Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Skeet Shipman who wrote (50222)	2/6/2002 6:30:22 PM
From: Pirah Naman	Respond to of 54805

Skeet: don't you mean to check " Net cash used in investing activities " from the cash flow statements rather than capital expenditures? The concept of FCF is to calculate real profits from operations. Reported profits (earnings) are penalized by none -cash charges (e.g. depreciation) and are boosted by ignoring real cash expenses (e.g. capital expenditures) necessary for continued operations. The net cash used in investing activities is perhaps a bit of a mis-heading. Capital expenditures would make more sense in "cash flows from operations." Other items in this section are certainly real, but generally do not reflect on operations. They are definitely worth looking at, as they give insight into the rationality of management in allocating resources. But non-operational cash flows do not give us a better handle on the profitability of core operations. - Pirah