Forum Archive Index - November 2001

[jerrold poh <jerm@musician.org>]

> > If you were going to research up on a company what would you look
> > for in the annual reports that would tell you they are making a
> > definite profit, that would effect the shares, I have some formulas
> > at home but I haven't got round to using them being young and lazy
> > so I was just wondering what other people are using to work this
> > out.
> > 
> The simple answer is that you simply need look at the net profit 
> figure as published in the annual report.  If it is positive, then 
> there is your answer.

I also like to use free cash flow from the cash flows statement to
complement net profit (note, I said complement, _not_ replace), which is
basically operating cash flows minus capital expenditure.  Look at the
Motley Fool's site at www.fool.com, and check out the Fool School under
Rule Maker criteria.  Even though they're obvious flaws in their
strategy (like lack of a selling strategy), it's still a good site to
learn some basic fundamental investing, and have fun doing so :).


Jerrold.


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