Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Validity of Earnings Reports
Date: Sun, 14 Apr 2002 21:29:24 -0400
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This is a multi-part message in MIME format. - ------=_NextPart_000_00A0_01C1E3FB.72C8C020 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable The Motley Fool puts a lot of importance on Cash Flow. You might want to = browse around there for more specifics, unless Katherine wants to jump = in and give all of us a primer on reading cash flow statements. 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 9:20 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? - ------=_NextPart_000_00A0_01C1E3FB.72C8C020 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2715.400" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3DArial>The Motley Fool puts a lot of importance on Cash = Flow. You=20 might want to browse around there for more specifics, unless Katherine = wants to=20 jump in and give all of us a primer on reading cash flow=20 statements.</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>= </DIV> <DIV><B>Sent:</B> Sunday, April 14, 2002 9:20 PM</DIV> <DIV><B>Subject:</B> Re: [CANSLIM] Validity of Earnings = Reports</DIV></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>= </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=20 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 for=20 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 = consistent=20 top and bottom line growth both sequentially and year to year. Now, = that is=20 even more important to me. If they are fudging, at least they are = doing it=20 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>= </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 an=20 important part of CANSLIM. What do you do to protect yourselves = from=20 companies that fudge their real=20 earnings?</FONT></DIV></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_00A0_01C1E3FB.72C8C020-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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