Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Validity of Earnings Reports
Date: Sun, 14 Apr 2002 20:27:26 -0500
Next Article (by Date): Re: [CANSLIM] Validity of Earnings Reports "Tom Worley"
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Ira,
Here's a good place to start:
http://www.investopedia.com/offsite.asp?URL=3Dhttp://invest-faq.com/artic=
les/analy-annual-rep.html
You'll also find other more specific references on cash flow at the =
Investopedia site, just do a search on "cash flow."
Katherine
----- Original Message -----=20
From: Ira Post=20
To: canslim@lists.xmission.com=20
Sent: Sunday, April 14, 2002 8:20 PM
Subject: Re: [CANSLIM] Validity of Earnings Reports
Good points Tom. Another thing I'm starting to do is to check the =
Operating Cash Flow from the Cash Flow statement against the earnings. =
I'd like to learn more about Cash Flow statements.
Ira
----- Original Message -----=20
From: Tom Worley=20
To: canslim@lists.xmission.com=20
Sent: Sunday, April 14, 2002 9:11 PM
Subject: Re: [CANSLIM] Validity of Earnings Reports
Ira, I don't think you can protect yourself from a company that is =
deliberately falsifying their financials, or using creative accounting =
to cover up real issues.
you would have to not only have an accounting degree, but go in and =
do an independent audit, which is not practical.
Best you can do is look for consistency (and inconsistencies) in the =
10Q and 10K reports. Read Management's discussion. Question or dig =
deeper into anything that doesn't make logical sense. Look for any =
changes in accounting procedures from prior periods.
Even before Enron, I preferred stocks showing consistent top and =
bottom line growth both sequentially and year to year. Now, that is even =
more important to me. If they are fudging, at least they are doing it =
consistently.
Tom Worley
stkguru@bellsouth.net
AIM: TexWorley
----- Original Message -----=20
From: Ira Post=20
To: canslim@lists.xmission.com=20
Sent: Sunday, April 14, 2002 9:06 PM
Subject: [CANSLIM] Validity of Earnings Reports
This has become a huge issue in the last year. I'm bringing it up =
to this list because earnings growth is such an important part of =
CANSLIM. What do you do to protect yourselves from companies that fudge =
their real earnings?
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<BODY bgColor=3D#ffffff>
<DIV>Ira,</DIV>
<DIV> </DIV>
<DIV>Here's a good place to start:</DIV>
<DIV> </DIV>
<DIV><A=20
href=3D"http://www.investopedia.com/offsite.asp?URL=3Dhttp://invest-faq.c=
om/articles/analy-annual-rep.html">http://www.investopedia.com/offsite.as=
p?URL=3Dhttp://invest-faq.com/articles/analy-annual-rep.html</A></DIV>
<DIV> </DIV>
<DIV>You'll also find other more specific references on cash flow at the =
Investopedia site, just do a search on "cash flow."</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dip108@yahoo.com href=3D"mailto:ip108@yahoo.com">Ira =
Post</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, April 14, 2002 =
8:20=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Validity =
of=20
Earnings Reports</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Good points Tom. Another thing =
I'm starting=20
to do is to check the Operating Cash Flow from the Cash Flow statement =
against=20
the earnings. I'd like to learn more about Cash Flow=20
statements.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Ira</FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dstkguru@bellsouth.net =
href=3D"mailto:stkguru@bellsouth.net">Tom=20
Worley</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, April 14, 2002 =
9:11=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Validity of=20
Earnings Reports</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial>Ira, I don't think you can protect yourself =
from a=20
company that is deliberately falsifying their financials, or using =
creative=20
accounting to cover up real issues.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>you would have to not only have an =
accounting degree,=20
but go in and do an independent audit, which is not =
practical.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>Best you can do is look for consistency (and =
inconsistencies) in the 10Q and 10K reports. Read Management's =
discussion.=20
Question or dig deeper into anything that doesn't make logical =
sense. Look=20
for any changes in accounting procedures from prior =
periods.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>Even before Enron, I preferred stocks =
showing=20
consistent top and bottom line growth both sequentially and year to =
year.=20
Now, that is even more important to me. If they are fudging, at =
least they=20
are doing it consistently.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>Tom Worley<BR><A=20
=
href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:=20
TexWorley</DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> =
<A=20
title=3Dip108@yahoo.com href=3D"mailto:ip108@yahoo.com">Ira Post</A> =
</DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV><B>Sent:</B> Sunday, April 14, 2002 9:06 PM</DIV>
<DIV><B>Subject:</B> [CANSLIM] Validity of Earnings =
Reports</DIV></DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>This has become a huge issue in the =
last=20
year. I'm bringing it up to this list because earnings growth =
is such=20
an important part of CANSLIM. What do you do to protect =
yourselves=20
from companies that fudge their real=20
earnings?</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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Next Article (by Date): Re: [CANSLIM] Validity of Earnings Reports "Tom Worley"
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