RE:RE:RE:To FoldingGreenEverything you said is correct and how I view the situation. That's why I'm long the stock. I prefer using GAAP/IFRS earnings whenever I can, but there are certain types of investments where GAAP/IFRS earnings do not give you a clear picture of what is going on with the business.
I've linked in previous posts to Buffett's discussion of this, where he notes that amortization of intangible assets can sometimes not be a real economic expense. Malone has also made similar statements in the past that I've also cited. I believe that this applies to CRH for the reasons I've discussed, and I in fact think that the market reaction to Q2 was crazy.
To be long CRH in my mind, you have to believe that the amortization is not a real economic expense for the Company. If it is in fact a real economic expense, then the stock is grossly overvalued and I'd be out tomorrow. I've written at length in prior posts why I don't think it's a real economic expense and why the stock is actually absurdly cheap on free cash flow metrics, which add this amortiztion back to net income.