A question about fundamentals:  I notice most stocks have a positive P/E ratio, so they must have earnings, yet a number of these show a negative Return On Equity.  How can there be a negative Return On Equity with positive earnings?  This doesn't make sense. 

This is important because some successful stock picking methods use Return On Equity as a major component for ranking stocks.  So is there any explanation for this discrepancy?  Is your data on Return On Equity reliable?  Thank you.