Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.
Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on United Capital (OTCPK: UCAP), whose recent revenue and earnings are plotted below.
5 Best Healthcare Technology Stocks To Own For 2014: Golden Tag Resources Ltd.(GOG.V)
Golden Tag Resources Ltd. engages in the exploration of mineral properties in Canada and Mexico. It explores for gold and silver deposits. The company principally holds interest in the San Diego joint venture silver property covering 91.65 hectares located in the northeast quadrant of Durango State, central Mexico; the McCuaig joint venture gold property comprising 3 unpatented mining claims located to the northwest of the Red Lake mine complex, Ontario; and the Aquilon Main gold project that covers 6,370 hectares located in James Bay, Quebec. Golden Tag Resources Ltd. was incorporated in 1980 and is headquartered in Kirkland, Canada.
5 Best Healthcare Technology Stocks To Own For 2014: Tenaris S.A.(TS)
Tenaris S.A., through its subsidiaries, engages in the manufacture and sale of steel pipe products. The company produces and sells both seamless and welded steel tubular products and related services for the oil and gas industry, particularly oil country tubular goods used in drilling operations, and certain other industrial applications with a production process that consists in the transformation of steel into tubular products. It also offers welded steel pipe products primarily used in the construction of major pipeline projects for the transportation of gas and fluids. In addition, the company provides sucker rods, casing and tubing, drill pipes, thermal tubulars, coiled tubing, premium connections, pipe accessories, welded steel pipes for electric conduits, industrial equipment, and raw materials. Further, it involves in the ownership and licensing of steel technology, as well as in the financial sector. The company serves oil and gas companies, car manufacturers, ref ineries, and petrochemical and gas-processing plants, as well as engineering companies engaged in constructing oil and gas gathering, transportation, and processing facilities. It operates in North America, South America, Europe, the Middle East, Africa, the Far East, and Oceania. The company is headquartered in Luxembourg. Tenaris S.A. is a subsidiary of San Faustin N.V.
Advisors' Opinion:- [By Dave Friedman]
The shares closed at $34.44, up $0.87, or 2.59%, on the day. They have traded in a 52-week range of $32.10 to $51.07. Volume today was 2,182,195 shares, against a 3-month average volume of 1,587,390 shares. Its market capitalization is $20.33billion, its trailing P/E is 16.49, its trailing earnings are $2.09 per share, and it pays a dividend of $0.84 per share, for a dividend yield of 2.50%. About the company: Tenaris S.A. manufactures seamless steel pipe products on a global basis. The Company also provides pipe handling, stocking, and distribution services to the oil and gas, energy, and mechanical industries. In addition, Tenaris supplies welded steel pipes for gas pipelines in South America.
Top Small Cap Companies To Watch For 2014: Synchronoss Technologies Inc.(SNCR)
Synchronoss Technologies, Inc. provides on-demand transaction management solutions primarily in North America. It offers solutions to manage transactions, including device and service procurement, provisioning, activation, intelligent connectivity management, and content synchronization for communications service providers, cable operators/multi-services operators, original equipment manufacturers with embedded connectivity, and e-Tailers/retailers. The company provides ConvergenceNow, ConvergenceNow Plus+, and InterconnectNow platforms that provide on-demand order processing, transaction management, service provisioning, device activation, intelligent connectivity, and content transfer and synchronization through e-commerce, telesales, enterprise, indirect, and other retail outlet channels. It also offers PerformancePartner Portal, a graphical user interface that allows the entry of transaction data into the gateway; Gateway Manager, which offers the capability to fulfill multiple types of transactions; WorkFlow Manager that provides interaction with third-party relationships, as well as enables customers to have a single transaction view, including data from third-party systems; and Visibility Manager, which offers a centralized reporting platform for intelligent analytics around the workflow, transaction management information, historical trending, and mobile reporting for users to receive critical transaction data on mobile devices. In addition, the company provides Content Synchronization Portal that facilitates content migration across devices from different platforms; Device Client, which offers connectivity for activation, connection management, and content migration and synchronization for feature phones, smartphones, computers, and tablets. It sells its products and services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was founded in 2000 and is headquartered in Bridgewater, New Jersey.
Advisors' Opinion:- [By David Eller]
Synchronoss (Nasdaq: SNCR) may be the most widely used company that you’ve never heard of. It provides an activation platform for mobile services and recently expanded into cloud computing through its recent acquisition of NewBay. As an activation vendor, Synchronoss has a relatively stable and boring business that is likely to grow through tablet adoption. However, carriers are attempting to increase their service offerings and NewBay provides the infrastructure to allow the carriers to do it. Synchronoss has the relationships and NewBay has the infrastructure. The date marking the beginning of the recent run in the share price was the date of the company’s presentation at the Credit Suisse conference, November 28. Professional investors have been building positions, but the game is still in early innings.
5 Best Healthcare Technology Stocks To Own For 2014: Cherokee Inc.(CHKE)
Cherokee Inc., together with its subsidiary, SPELL C. LLC, engages in marketing and licensing brands and trademarks for apparel, footwear, home, and accessories primarily in the United States, Canada, Mexico, the United Kingdom, Europe, and South Africa. It owns various trademarks, including Cherokee, Sideout, Sideout Sport, Carole Little, Saint Tropez-West, Chorus Line, and All That Jazz. The company also assists other brand-owners, companies, wholesalers, and retailers in identifying licensees or licensors for their brands or stores. As of January 29, 2011, it had 30 licensing agreements. The company has a strategic relationship with Target Corporation (Target) that grants Target the exclusive right in the United States to use the Cherokee trademarks in certain categories of merchandise. Cherokee Inc. was founded in 1988 and is based in Van Nuys, California.
5 Best Healthcare Technology Stocks To Own For 2014: Mentor Graphics Corporation(MENT)
Mentor Graphics Corporation provides electronic design automation software and hardware solutions to automate the design, analysis, and testing of complex electro-mechanical systems, electronic hardware, and embedded systems software. It offers ModelSim, a hardware description language mixed-language digital simulator; Questa tool for the verification of systems and ICs; analog/mixed signal simulators, including Eldo, ADVance MS, and ADiT tools; and Veloce, a hardware emulation system. The company also provides Calibre DRC and Calibre LVS physical verification tools; Calibre xRC and xACT transistor-level extraction and device modeling tools; Calibre lithography tools; Calibre PERC tool for checking the electrical design of an IC; and Olympus-SoC place and route solution. In addition, it offers Expedition Series PCB design products; PADS, a PCB design and layout solution; I/O Designer that integrates FPGA input/output planning with PCB design tools; XtremePCB tool for simul taneous design; XtremeAR, a PCB routing product; and FloTHERM, a 3D computational fluid dynamics software. Further, the company provides software tools for the design of complex wire harness systems and automotive electronic components; and a suite of real-time operating systems, Linux and Android products, middleware, and associated development and debugging tools for developing embedded software. Additionally, it offers software support, hardware support, and customer training services; professional consulting services; and methodology development and refinement services to improve product development processes. The company sells and licenses its products through direct sales force, distributors, and sales representatives primarily to large companies in military and aerospace, communications, computer, consumer electronics, semiconductor, networking, multimedia, and transportation industries worldwide. Mentor Graphics Corporation was founded in 1981 and is headquartered in Wilsonville, Oregon.
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