quo vadis, mining srvices sector?, page-5

this is an interesting graph

Price usually reflects what is going to happen in the future
In most of the cases price is above eps reflecting what will happen the following year

But look at what has happened recently - the price has dipped below eps ie investors are expecting eps to drop next year

the question is have investors got it right
Are they on the money or are they being irrationally negative?

You see investors may being too negative
How do you know?