Melancholy types might try to tell you April is the cruelest month, but XRX would likely beg to differ. Xerox shares endured four severe sell-offs over a 15-month period: in July 1999, October 1999, July 2000, and October 2000. Two words apply to all four price plunges: weak earnings. Thoman commemorated the October '99 drop with a comment both odd and tacky: "I just lost two-thirds of my net worth, and none of us are feeling fat, dumb and happy right now." Perhaps not surprisingly, the poetic CEO was ushered out the door the next spring.

Thoman didn't take XRX's fundamental woes packing with him when he left (though he did slip off with a sweet $800,000 annual pension). In October 2000, a continued losing streak in the earnings spotlight led Xerox to slash its quarterly dividend -- and deny rumors that it was seeking bankruptcy protection.

What next? Xerox shares aren't faring too well at present; they're currently trading near two-year lows. However, signs of fundamental growth are peeking through. The company has managed to meet or narrowly exceed Wall Street's expectations in each of its past five earnings reports, including its most recent statement on July 24. In November 2007, XRX announced its first quarterly dividend in six years. And, in January, the company rolled out a redesign to its familiar old logo -- a reminder to shareholders and consumers that Xerox is no longer the outdated copier company of yesterday.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the weekly video series Option Basics on SchaeffersResearch.com.