Comments on: Cash Flow: One of the Most Accurate Ways to Analyze a Stock’s Value

By: Joe

Joe — Tue, 06 Sep 2011 23:33:13 +0000

Cash Flow was a very good article. It actually mirrors what I discovered on my own a few years ago. A must read for anyone investing.

By: Investment U

Investment U — Tue, 06 Sep 2011 13:04:26 +0000

Mendel,

You are in luck… Marc also penned an article about Leveraged Cash Flow that you can find here: http://www.investmentu.com/2011/March/levered-cash-flow-reliable-dividends.html

Thank you,

Investment U

By: lf selby

lf selby — Mon, 05 Sep 2011 18:10:14 +0000

Marc, thanks ! good solid information that i can use …..lselby

By: Mendel Bernstein

Mendel Bernstein — Mon, 05 Sep 2011 15:49:22 +0000

Explain leveraged cash flow ,please
Thx

By: Ted

Ted — Mon, 05 Sep 2011 14:22:00 +0000

Good article. I did need the postings for some clarification.
My Q: Where would one find the P/CF for the S&P, for company comparison as was mentioned with Doctor Pepper in the article?

Thanks, Ted

By: warren

warren — Mon, 05 Sep 2011 14:11:36 +0000

very good advice, I will be using this info when looking at stocks, thank you!

By: kyle W

kyle W — Mon, 05 Sep 2011 14:11:04 +0000

Thanks for the great info on how to calculate a business. Tried this for (VAR). Took 6.26 B and divided by 495.29 Million = .012639. What’s the correct answer? Not sure whether to move the decimal point over 2 or 3 places?
Thanks Marc !

By: AR

AR — Mon, 05 Sep 2011 13:32:24 +0000

Very informative and useful.

By: Billy T

Billy T — Mon, 05 Sep 2011 12:40:47 +0000

You said about GFA: “Just a cursory look at the financials makes me wonder how the company can report growing earnings every year, while burning more cash to run its business.” Answer is easy:

They have expenses building every more homes and offices every year, that will provide income later. I have made a lot of money in early stage drug development companies that have no income and only large expenses for their clinical tests for years.

You must understand that it is the nature of some business that the income comes later so current negative cash flow, if it can be financed at modest cost without too much dilution of shares can be a sign of great gains later. Like bringing billion dollar per year in sales drug to market.

By: Levered Cash Flow is Crucial for Picking Reliable Dividends

Levered Cash Flow is Crucial for Picking Reliable Dividends — Tue, 07 Jun 2011 15:07:05 +0000

[...] evaluating a company’s ability to pay its dividend. But readers who left comments in favor of cash flow are also absolutely [...]