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He looks for healthy cash flow (in the sense of net earnings plus depreciation).
That price is just four times expected cash flow (in the sense of earnings plus depreciation).
First, the correlations between the parts naturally allow for 'information flow' in the sense of the information-as-correlation stance.
It sells for 90% of annual revenue and 4.6 times cash flow (in the sense of net income plus depreciation).
All these stocks show positive cash flow (in the sense of net income plus depreciation) in the latest quarter.
The price is also just 6 times cash flow (in the sense of earnings plus depreciation and amortization).
For example, it changes hands at 6.8 times cash flow (in the sense of net income plus depreciation and amortization).
That would cut free cash flow (in the sense of cash flow from operations minus capital expenditures).
CapLeases dividend (9.9%) is covered by cash flow (in the sense of net income plus depreciation), and most of its portfolio is under fixed-rate financing.
Even Genentech, a biotech "blue chip" with earnings, sells for a wild 47 times its cash flow (in the sense of net income plus depreciation).
Jefferies analyst Fyhr recommends paying close attention to how the stocks are valued relative to their cash flow (in the sense of net income plus depreciation).
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