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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (13750)	1/23/2002 8:57:33 AM
From: TimbaBear	Read Replies (1) \| Respond to of 78476

Don Earl [[[<<<Since most going concerns consume cash, their earnings streams may be of limited value unless such flows are also combined with access to capital markets, either credit markets or equity markets or both.>>> Good post. The only problem is a company that constantly needs to issue debt or stock to stay in business is not a going concern. The Enrons and K-Marts are a dime a dozen. Everyone is hap, hap, happy with the wonderful revenue and PE right up until it's time to pay the bills.....]]] I agree wholeheartedly, Don [[["....If the SEC were to make one rule to cure Enron type reporting, it would be to require companies to report free flow cash from operations at the bottom line...."] I agree with the principal your supporting, but I think I am a bit more cynical than you. If cash flow was the highly publicized number, then cash flow accounting conventions would be more highly abused to make those numbers appear to be better or "more acceptable" I don't think there is any substitute for an individual investor/speculator doing their own due diligence, because no matter how stringent the enforcement, GAAP abuses will occur. I would strongly support those actions whose intent and foreseeable outcomes are the accurate and transparent, public recording of the financial pictures of a company on a regular basis. This is what our 10Q and 10K filings are supposed to achieve. I also strongly support heavy penalties for those in the accounting profession who seriously violate these principals of accuracy and transparency, because these are the principals that help free enterprise to work efficiently and progressively. Without this openness and clarity our capitalistic system here in America would be seriously jeopardized and that, to me, is a crime that should have nasty penalties. Timba