Sep
8
Free Cash Flow: Lifeblood of Corporations
September 8, 2008 | 2 Comments
Before you invest heavily in stocks, you should really pore over the cash flow statement. I regard it as the bible, more important than the balance sheet or profit/loss statement.
Emphasizing on earnings alone is ill-advised as devious managements can window-dress results using accounting gimmicks. Cash flow is harder to fake and following the trail of […]
Aug
25
Inflating Earnings By Capitalizing Expenses
August 25, 2008 | Leave a Comment
In real life, expenses are pretty straightforward. Anything which constitutes an outflow of money to pay for a product or service is deemed as an expense. For accounting students, an expense is recorded when an asset is used up and a liability recorded. Simple, right?
However, there are instances when you struggle to answer this question: […]
Aug
18
Housing Mortgage Crisis - No Nation Spared
August 18, 2008 | Leave a Comment
The Straits Times Index fell 20.52 points Monday to close at 2,776.98, volume was a trickle at 948 million, while gainers/losers stand at 157/371.
As second-quarter earnings filtered in, we saw that most companies fail to impress with slowing sales and profit margin as compared to last year, and expectations for financial year 2008 had been […]
Jul
17
Over-reaction to Google’s Earnings Disappointment
July 17, 2008 | Leave a Comment
How is Google faring in this ailing US economy? Google’s earnings growth for the second quarter was a disappointment for investors, raising fears that the online search leader has finally stumbled.
Earnings per share were lower than analysts’ forecast. Google reported $4.63, compared to predictions of $4.74, and investors dumped shares causing price to plunge by […]

