SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Professional Equity Analysis - the Pursuit of True Value
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Winston Chang who wrote (68)2/12/1997 11:21:00 PM
From: mauser96   of 102
 
One of the big reasons to use cash flow is that earnings are more likely to be manipulated. That is not to say that cash flow can't be manipulated, just that since it is less visible and popular, therefore there is less incentive for management to manipulate it.
One should be careful with GAAP as they apply to high tech companies,since the rules were developed for different types of companies. For instance, the handling of good will and R&D.
I agree that long term projections of any kind are not meaningful with this kind of company. In fact any projection that forces you to make a prediction of interest rates is of dubious value. If either of us could accurately predict interest rates, we would be posting these notes from our 200 ft. yacht.
IN answer to question #1, I think cash flow is more predictable, but I can't prove it.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News