Gildan's Tax Avoidance
Read the full article at: http://barelkarsan.com/2008/12/gildans-tax-avoidance.html
Submitted by sajid.karsan on Sun, 2008-12-14 23:44.
(via barelkarsan.com)
When we looked at Spark Networks' glowing P/E, we noticed that it was due in large part to a huge tax benefit due to past operating losses. Since this tax benefit would not occur in the future, the company's current net income had to be discounted by a tax rate in order to determine the company's true earning power going forward. For Gildan Activewear (GIL), we see similarly suspicious earnings after taxes:
