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.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Clarksterh who wrote (29137)	11/19/2002 10:13:25 PM
From: propitious7	Read Replies (1) \| Respond to of 197275

cash flow/ free cash flow clark I don't think that "cash flow" is an ambiguous term in accounting, but I agree there are variations. The variations I am familiar with do have ambiguity, and I think this is because they have been invented not by accountants but by securities analysts. Thus "free cash flow" is an analyst term which means cash flow minus capex (capital expenditures) + (at least to some analysts) dividends. For companies like cell phone carriers which simply have to incur capex, free cash flow is very useful. NXTL has large positive cash flow, has some positive earnings but has yet to show positive free cash flow. For a company like QCOM with $3B of cash and very limited capex except for discretionary investment decisions, free cash flow is not a relevant metric, IMO. I don't think accountants use terms which commingle balance sheet and income statement accounts but i'm no accountant. propitious

To: Clarksterh who wrote (29137)	11/20/2002 11:23:49 AM
From: quidditch	Read Replies (1) \| Respond to of 197275

Cash flows--Clark is closer to the mark than propitious. As Clark noted, many investors might focus on operating cash flow, as a fundamental indice as to the health of operations. But a company's overall GAAP reported cashflows (who ever uses GAAP any more?) nets operating cash flows/uses of cash (which, as prop noted, which net out non-cash items that reduce reported income, such as depreciation/amortization), against cash flows/uses of cash from investments, against cash flows/uses of cash from financing activities, the net net of which shows increase or decrease in your cash position from the overall business. So, yes, investment in Brazil will show up. quid PS Clark--good to see you regularly posting in these precincts after a long (probably profitable) absence. A question: do you know of a way to jerryrig an antenna to a cell phone antenna in order to improve strength of signal in one's home calling area. VZ sold me on its "superior network", but where I live (hilly and cell sites are sparse), it's barely better than PCS's coverage. Radio Shack said it used to sell these but no longer carries such a product.