The financial report indicates that during the second quarter, JD.com realized non GAAP profit, with net income reaching RMB 391.4 million yuan.

The financial report said that the diluted non GAAP earning per ADS of JD.com in the second quarter is 0.04 US dollar, far above analysts' expectation.

In March 2009, the S amp P 500 index was down to 660, earnings per share (EPS) of US companies and banks had sunk to a financial crisis low, and price earnings ratios were in the single digits. Today, the S amp P 500 is more than 100 higher (hovering near 1,430), the average EPS is close to 100, and P E ratios are above 14.

In March 2009, the S P 500 index was down to 660, earnings per share (EPS) of US companies and banks had sunk to a financial crisis low, and price earnings ratios were in the single digits. Today, the S P 500 is more than 100 higher (hovering near 1,430), the average EPS is close to 100, and P E ratios are above 14.

According to the data aggregated by Yahoo Finance, the previous average expectation of 15 analysts in the Wall Street is that the diluted non GAAP earning per ADS (American Depositary Share) of JD.com in the second quarter is 0.03 US dollar.

And we should also be very careful about the accounting used for derivatives. On this technical but crucial point, US generally accepted accounting principles (GAAP) are considerably more generous (because they understate potential losses) than International Financial Reporting Standards (IFRS).

At the end of 2012, when Hoenig started to publish his US GAAP IFRS adjustment, the average for the largest US banks was roughly 4 equity. It is possible to argue that this key measure is moving in the right direction, but the pace of improvement is glacial at best.

Even during QE2, in the summer of 2010, the S P 500, P E ratios, and EPS were much lower than they are today. If, as is likely, economic growth in the US remains anemic in spite of QE3, top line revenues and bottom line earnings will turn south, with negative effects on equity valuations.

Even during QE2, in the summer of 2010, the S amp P 500, P E ratios, and EPS were much lower than they are today. If, as is likely, economic growth in the US remains anemic in spite of QE3, top line revenues and bottom line earnings will turn south, with negative effects on equity valuations.