No one expects a company to release an earnings statement that stresses its failures and weaknesses. But in NetBank’s case, the ever-widening gap between wildly spun misdirection and anything resembling a rational discussion should concern anyone trying to distinguish actual profit potential from dubious business practices.

To read its latest earnings announcement, you’d think NetBank is a tremendous success. Ironically, the accompanying financials tell the real story of a company with substandard financial performance. In truth, NetBank’s claim of another profitable year relies on booking a series of non-recurring gains, not on producing more income from operations than it spent to earn the money.

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