Net Change in Cash
11-12-2013, 12:46 AM
Sometimes I see a company's "net change in cash" changes between positive and negative every alternate years or regularly every 2-3 years. E.g. Spindex.
What does it means? Any thing I can infer from this? Thanks in advance! 
11-12-2013, 11:48 AM
(11-12-2013, 12:46 AM)Dividend Hermit Wrote: Sometimes I see a company's "net change in cash" changes between positive and negative every alternate years or regularly every 2-3 years. E.g. Spindex. see the changes in components more meaningful la. high level numbers like NAV, PE, EPS dont usually tell the whole story.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
11-12-2013, 12:16 PM
Ya lol, it's really hard work. Not only we look at financial ratios, the most important point is it the truth or correct when taken as the whole picture of the business reports (aka Balance Sheet, Income Statement, Cash Flow Statement, Explanatory notes, etc.. Yikeee.. )?
Maybe go for Blue Chips the MOS usually should be better then penny stocks.
WB:-
1) Rule # 1, do not lose money. 2) Rule # 2, refer to # 1. 3) Not until you can manage your emotions, you can manage your money. Truism of Investments. A) Buying a security is buying RISK not Return B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return. NB:- My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore. 
11-12-2013, 01:15 PM
(11-12-2013, 12:46 AM)Dividend Hermit Wrote: Sometimes I see a company's "net change in cash" changes between positive and negative every alternate years or regularly every 2-3 years. E.g. Spindex. Yes, looking into the components is more important. What is driving the increase/decrease in net change in cash? Is it working capital? If so, is it sustainable? Is it debts? If so, why raise debts? Will they be able to finance it when it is due? Etc etc etc Normally, net change will fluctuate since there is so many components driving it.
"Criticism is the fertilizer of learning." - Sir John Templeton
11-12-2013, 01:22 PM
By looking at net cash is positive alone don't really tell you anything much lol!
WB:-
1) Rule # 1, do not lose money. 2) Rule # 2, refer to # 1. 3) Not until you can manage your emotions, you can manage your money. Truism of Investments. A) Buying a security is buying RISK not Return B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return. NB:- My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
11-12-2013, 06:15 PM
Thanks everyone for your help.
I am thinking it is more due to operation or maintenance since the pattern is so regular though more probing is required. |
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