Comments on: How to Make Money in Stocks Using Cash Flows

By: Taking Facebook and Twitter Public « Investing Caffeine

Taking Facebook and Twitter Public « Investing Caffeine — Tue, 31 Aug 2010 00:35:05 +0000

[...] Where does one start? Conceptually, one method used to determine a company’s value is by taking the present value of all future cash flows. For growth companies, earnings and cash flows can vary dramatically and small changes in assumptions (i.e., revenue growth rates, profit margins, discount rates, taxes, etc.) can lead to drastically different valuations. As I have mentioned in the past, cash flow analysis is a great way to value companies across a broad array of industries – excluding financial companies (see previous article on cash flow investing). [...]

By: Cash Flow Statement: Game of Cat & Mouse « Investing Caffeine

Cash Flow Statement: Game of Cat & Mouse « Investing Caffeine — Fri, 12 Mar 2010 07:47:21 +0000

[...] place to go. One way to think about the cash flow statement is like a cash register (see related cash flow article). Any business evaluated will have cash collected into the register, and cash disbursed out of it. [...]

By: Dancing Elephants in a Challenging Economy « Investing Caffeine

Dancing Elephants in a Challenging Economy « Investing Caffeine — Mon, 15 Feb 2010 16:42:44 +0000

[...] “short” ideas. Regardless of how sexy growth may be, investors should never ignore valuation (read more about valuation). As stated at the beginning of the article, I mainly want to emphasize that trillions of commerce [...]

By: From Pooches to Profits « Investing Caffeine

From Pooches to Profits « Investing Caffeine — Mon, 19 Oct 2009 09:05:13 +0000

[...] The fruits of these labors are creating results. Just last week at their analyst meeting, PETM raised their 2009 earnings per share forecast to a range of $1.43 – $1.51 (from previous estimate of $1.37 – $1.45). Based on 2010 Wall Street estimate of $1.54, PETM’s stock currently trades at a reasonable 16.5x P/E multiple. On a free cash flow basis, the multiple on the estimated $226 million this year is even more attractive (see my article on cash flow investing). [...]

By: EPS House of Cards: Tricks of the Trade « Investing Caffeine

EPS House of Cards: Tricks of the Trade « Investing Caffeine — Tue, 13 Oct 2009 09:04:48 +0000

[...] and requires a lot of hard work. My process on picking winning stocks is heavily cash flow based (see my article on cash flow investing) analysis, which although lumpier and more volatile than basic EPS analysis, provides a deeper [...]

By: Time to Take Out the Trash: From Garbage to Cream « Investing Caffeine

Time to Take Out the Trash: From Garbage to Cream « Investing Caffeine — Fri, 25 Sep 2009 10:48:28 +0000

[...] equity (ROE), companies with low levels of debt (leverage), generating healthy levels of cash flow (See Cash Flow Article), represents “quality” investing to me. From a fundamental standpoint, management teams with a [...]