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Technology Stocks : IMRS racking up y2k contracts.

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To: r. c. cummings who wrote (2430)4/27/1998 6:30:00 PM
From: P. Ramamoorthy   of 3162
 
Money flow? Volume increase or decrease by itself does not tell us whether the price dropped or rose. Money flow, on the other hand, tells us the "direction of demand" for the stock. If the share price rises from 31 to 35 on 100 share volume on that day, money flowed into the stock = (35-31)*100 = $400. Positive - there were net buyers for this stock. If the price drops from 35 to 31 on 100 share vol., the money flowed OUT of the stock = (31-35)*100 = -$400. Net sellers. There may be other variations or definitions. The idea is simple: demand is determined by buyers vs. sellers.
Cash flow, on the other hand, refers to how much cash is left (expressed per share) after subracting expenses from revenues. If the company has a revenue of $100, a total expense of $80 and have 100 shares outstanding. cash flow = (100-80)/100 = 20 cents/sh. Some businesses are valued on cash flow. FWIW. Sorry, if it sounded "preachy". Ram
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