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 Lionbridge Technologies (Nasdaq: LIOX ) , whose recent revenue and earnings are plotted below.
10 Best Wireless Telecom Stocks To Watch Right Now: Sport Chalet Inc.(SPCHB)
Sport Chalet, Inc. operates specialty sporting goods stores in California, Nevada, Arizona, and Utah. Its stores offer traditional sporting goods merchandise, including footwear, apparel, and other general athletic products; and core specialty merchandise, such as snowboarding, skateboarding, mountaineering, and scuba. The company?s stores also offer various services for the sports enthusiast, including backpacking, canyoneering and kayaking instruction, custom golf club fitting, snowboard and ski rental and repair, scuba training and certification, scuba boat charters, team sales, racquet stringing, and bicycle tune-up and repair. As of July 3, 2011, it operated 54 store locations; and an online store at sportchalet.com. The company was founded in 1959 and is based in La Ca�da, California.
10 Best Wireless Telecom Stocks To Watch Right Now: The Children's Place Retail Stores Inc.(PLCE)
The Children's Place Retail Stores, Inc. operates as a children's specialty apparel retailer in North America. It provides apparel, accessories, and shoes for children from newborn to 10 years of age. The company designs, contracts to manufacture, and sells merchandise under The Children's Place brand name. It serves the wardrobe needs of girls and boys, baby girls and boys, and newborn. As of January 28, 2012, the company operated 1,049 The Children's Place stores, including 732 stores located in malls, 140 in strip centers, 135 in outlet centers, and 42 street stores; and an Internet store at childrensplace.com. The Children's Place Retail Stores, Inc. was founded in 1969 and is based in Secaucus, New Jersey.
5 Best Warren Buffett Stocks To Own For 2014: Vislink(VLK.L)
Vislink plc, together with its subsidiaries, provides secure communications for the news and entertainment; law enforcement and public safety; marine and energy; and related technical services markets. It engages in the design and manufacture of microwave radio transmission equipment; satellite uplink and downlink equipment; and wireless cameras. The company also offers broadcast transmission systems integration and project management services; and technical installation services. Its CCTV systems product range includes man/machine control interfaces, unique flash lights, and thermal camera stations for ice-detection and crane and submersible applications. The company serves its customers through direct sales, value added resellers, distributors, and agents. It operates primarily in the United Kingdom, the Unites States, Norway, Dubai, Singapore, and South Africa. Vislink plc is based in Hungerford, the United Kingdom.
10 Best Wireless Telecom Stocks To Watch Right Now: Babcock Int Grp(BAB.L)
Babcock International Group PLC provides engineering support services. It operates in four segments: Marine and Technology, Defense and Security, Support Services, and International. The Marine and Technology segment offers naval support services. This segment?s services include base porting, refitting, refueling, and decommissioning submarines; and maintaining and refitting warships, building the aircraft carriers, managing naval bases, and providing equipment support. The Defense and Security segment provides training and asset support services to the armed forces. The Support Services segment offers a range of training and support services to various civil government and blue-chip customers, including government departments, police authorities, fire and rescue authorities, local authorities, and international companies. This segment offers equipment support, infrastructure support, education and training, and communications services. The International segment provides support services ranging from design and implementation of specific training programs to the maintenance and logistics support of assets, including communication systems, facilities, vehicles, and aircraft to the U.S. armed forces. This segment also offers engineering support services to the energy, process, mining, and construction industries. The company primarily serves defense, airports, communications, education, emergency services, energy, nuclear, property, training, and rail industries. It has operations in Africa, the Asia Pacific, Australasia, Europe, the Middle East, and North America. The company was founded in 1891 is based in London, the United Kingdom.
10 Best Wireless Telecom Stocks To Watch Right Now: The Pantry Inc.(PTRY)
The Pantry, Inc. operates a chain of convenience stores in the southeastern United States. The company?s stores offer a selection of merchandise, fuel, and ancillary products and services. Its merchandise products include cigarettes, grocery and other tobacco products, packaged beverages, beer, and wine. The company operates stores under various selected banners, which primarily include Kangaroo Express. As of September 29, 2011, it operated 1,649 convenience stores located in Florida, North Carolina, South Carolina, Georgia, Alabama, Tennessee, Mississippi, Virginia, Kansas, Kentucky, Louisiana, Indiana, and Missouri; and 233 quick service restaurants. The company was founded in 1967 and is headquartered in Cary, North Carolina.
10 Best Wireless Telecom Stocks To Watch Right Now: Research in Motion Limited(RIMM)
Research In Motion Limited (RIM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. The company, through the development of integrated hardware, software, and services, provides platforms and solutions for seamless access to time-sensitive information, including email, phone, short messaging service, and Internet and Intranet-based applications and browsing. Its products and services principally comprise the BlackBerry wireless platform, the RIM Wireless Handheld product line, software development tools, and other software and hardware. The company?s BlackBerry smartphones use wireless, push-based technology that delivers data to mobile users? business and consumer applications. Its BlackBerry smartphone portfolio includes BlackBerry Bold series, the BlackBerry Torch, BlackBerry Curve series, the BlackBerry Style, BlackBerry Storm series, the BlackBerry Tour, BlackBerry Pearl series, and the BlackBerry PlayBook tablet. T he company?s BlackBerry enterprise solutions comprise BlackBerry enterprise server, BlackBerry enterprise server express, BlackBerry mobile voice system, and hosted BlackBerry services. Its technology also enables third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data, and third-party support programs. In addition, the company offers BlackBerry technical support services, non-warranty repairs, and nonrecurring engineering services. Further, it provides BlackBerry App World that offers BlackBerry smartphone users an electronic catalogue that aids in the discovery and download/purchase of applications directly from their BlackBerry smartphone. The company markets and sells its BlackBerry wireless solutions primarily through global wireless communications carriers, and third party distribution channels. Research In Motion Limited was founded in 1984 and is headquartered in Waterloo, Canad a.
Advisors' Opinion:- [By Kevin M. O'Brien]
Research In Motion (RIMM) will go private. The stock, rightfully so, has been completely crushed in 2011. The negative sentiment surrounding this company makes it hard to envision the stock price recovering anytime soon. Their two-CEO structure has been a major problem. Concerns with Research In Motion are plentiful. This was once a great and innovative company. It actually makes sense to take it private sooner rather than later as the stock price looks to be headed to the single digits unless a buyout could happen, which I do not see taking place.
- [By Chuck Carlson]
RBC Capital’s Mike Abramsky today reiterates a Sector Perform rating on Research in Motion (RIMM) shares, writing that the company’s fiscal Q2 results for the three months that ended in August likely beat the consensus $4.47 billion revenue estimate and 87 cents EPS estimate, coming in more like $4.5 billion and 90 cents.
He also thinks Q3′s forecast will beat the consensus $5.3 billion and $1.36, helped by the introduction last month of new BlackBerry models based on “OS 7.”? The devices are succeeding in luring upgrade buyers from existing BlackBerrys, he writes, with his “checks” of 90 different outlets for Verizon Communications (VZ), AT&T (T), Sprint-Nextel (S), and T-Mobile USA showing a 20% sell-out rate across the various models.
Despite that positive data point, Abramsky believes there’s still risk to RIM’s turnaround.
“With BB7 uptake in line with our base case scenario QNX handsets may remain pivotal to reversing NA share declines,” he writes, with RIM perhaps having 12% share of North American smartphone shipments at present, down from 15% last quarter, and below Google’s (GOOG) 60% share by platform and Apple’s 25% share.
“To be more constructive on the shares, we look for signs of North American share recovery, better execution, improved visibility to QNX Smartphones and related innovations (LTE, multi-device BES, Android emulation), or value-creating initiatives.”
RIM shares today are down 44 cents, or 1.4%, at $31.05.
- [By Fitz Gerald]
Rumors that the BlackBerry maker hired an investment banker to assist in weighing strategic options spurred heavy trading traffic in the weeklies this morning. Shares in RIMM are up 4.15% at $21.35 as of 12:05 pm on the East Coast, after earlier rallying as much as 9.7% to $22.49. Options on Research In Motion are some of the most active today, with volume on the stock approaching 110,000 contracts in early-afternoon trade. Investors are favoring calls, exchanging nearly 2 call options for each single put in play thus far in the session. Fresh prints in weekly calls suggest some strategists are positioning for shares in RIMM to extend gains through the end of this week. Volume in the weeklies is heaviest at the Oct. '07 $22 strike, where more than 8,600 contracts changed hands against previously existing open interest of 2,399 positions. Traders appear to have purchased the majority of the contracts for an average premium of $0.59 each. Call buyers profit if RIMM's shares rally another 5.8% to exceed the average breakeven price of $22.59 at expiration. Buyers outnumbered sellers driving substantial volume in calls at the Oct '07 $24 and $25 strikes, as well. Continued speculation surrounding the beleaguered BlackBerry maker could be just what call buyers need to see the value of their call options appreciate in the next few days. Increases in options implied volatility on the stock, which currently trades 2.38% higher on the day at 81.0%, may also benefit long option holders.
10 Best Wireless Telecom Stocks To Watch Right Now: Oil States International Inc.(OIS)
Oil States International, Inc., through its subsidiaries, provides specialty products and services to the oil and gas drilling and production companies worldwide. It operates in four segments: Accommodations, Offshore Products, Well Site Services, and Tubular Services. The Accommodations segment offers temporary and permanent work force accommodation services for people working in remote locations. The Offshore Products segment designs and manufactures flexible bearings and connector products; sub sea pipeline products; marine winches, mooring systems, and cranes and rig equipment; and conductor casing connections and pipes, as well as provides blowout preventer stack assembly, integration, testing, and repair services; and drilling riser and related repair services. The Well Site Services segment offers a range of products and services that are used to drill for, and establish and maintain the flow of oil and gas from a well throughout its lifecycle. This segment engages in the rental of wireline and coiled tubing pressure control equipment; wellhead isolation equipment; pipe recovery systems; thru-tubing fishing services; hydraulic chokes and manifolds; blow out preventers; well testing and flowback equipment; gravel pack operations on well bores; and surface control equipment and down-hole tools utilized by coiled tubing operators. This segment also provides land drilling services. The Tubular Services segment distributes a range of casing and tubing products; and offers threading, logistical, and inventory management services. The company serves national oil companies, independent oil and gas companies, onshore and offshore drilling companies, and other oilfield service and mining companies. Oil States International, Inc. was founded in 1995 and is based in Houston, Texas.
10 Best Wireless Telecom Stocks To Watch Right Now: Falcon Energy Group Limited(5FL.SI)
Falcon Energy Group Limited, an investment holding company, provides various services to oil companies and contractors in the Americas, Asia, and the Middle East. It operates in four divisions: Marine, Oilfield Services, Oilfield Projects, and Resources. The Marine division provides offshore support vessels to the offshore marine industry. Its services include offshore hook-up and commissioning, offshore conductor piling, hydraulic work-over/coiled tubing/well stimulation, subsea services, pipe trenching, submarine cables, and controlled source electro-magnetic survey. This division owns and manages a fleet of 15 vessels, including accommodation work barges, multi-purpose supply vessels, and anchor handling tug supply vessels. The Oilfield Services division provides oilfield services comprising agencies, logistics, and procurement services, as well as other general supporting services to oil and gas companies worldwide. This division also engages in oil trading and other r elated activities. The Oilfield Projects division involves in projects and investments related to the offshore marine, and oil and gas industry. The Resources division engages in coal trading, coal mining, and other related activities. The company is based in Singapore.
10 Best Wireless Telecom Stocks To Watch Right Now: Pac Nth West Cap C Com Npv (PFN.TO)
Pacific North West Capital Corp. engages in the acquisition, exploration, and development of platinum group metal (PGM), and precious and base metal properties primarily in Canada. It explores for PGM, gold, silver, and base metal properties in British Columbia, Ontario, Saskatchewan, and Alaska. The company primarily holds a 100% interest in the River Valley PGM project that consists of 410 mining claims in 38 claim units covering approximately 6,600 hectares located in the Sudbury region of Ontario. Pacific North West Capital Corp. was founded in 1996 and is headquartered in Vancouver, Canada.
10 Best Wireless Telecom Stocks To Watch Right Now: 1st Constitution Bancorp(NJ)
1st Constitution Bancorp operates as a bank holding company for 1st Constitution Bank that provides community banking services to corporations, individuals, partnerships, and other community organizations in the central and northeastern New Jersey area. It offers various deposit products, including noninterest bearing demand deposits, interest bearing demand deposits, savings deposits, and time deposits, as well as certificates of deposit, and money market and NOW accounts. The company also provides a range of loan products comprising commercial loans for working capital, business expansion, and the purchase of equipment and machinery; construction loans to real estate developers for the acquisition, development and construction of residential subdivisions; residential consumer loans; term loans; lines of credit; loans secured by equipment and receivables; second mortgage home improvement loans; home equity lines of credit; and non-residential consumer loans for automobile s, recreation vehicles, and boats, as well as secured and unsecured personal loans, and deposit account secured loans. It provides its services through a network of 14 branches. The company was founded in 1989 and is based in Cranbury, New Jersey.
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