Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

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Thursday, July 24, 2008

Seven Summits Research Releases Comments on EBAY, QCOM, GM, OXY, and FFIV

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CHICAGO, July 24, 2008 /PRNewswire via COMTEX/ ----Seven Summits Research releases NewsBites on key stocks.

Seven Summits Strategic Investments NewsBites are available to all investors at:

http://www.go7now.com/nb/0724Y (Note: You may have to copy this link into your browser then press the [ENTER] key.)

Today's Seven Summits Strategic Investments NewsBites cover the following stocks: eBay Inc. (Nasdaq: EBAY), QUALCOMM Inc. (Nasdaq: QCOM), General Motors Corporation (NYSE: GM), Occidental Petroleum Corp. (NYSE: OXY), and F5 Networks Inc. (Nasdaq: FFIV).

These brief stock reports may contain details regarding recent or anticipated stock moves, resistance and support price levels, insider trades, upgrades, downgrades, and other news from our network of information resources. Reports may also include hedged trade ideas designed to potentially protect investors from unexpected market shifts. While other market reports provide only stock news, we offer strategies that hedge investments against uncertainty. Hedged trades increase your chances of making a profit, even if a stock goes down.

"Our NewsBites strive to go above and beyond other stock market news reports. Along with brief concise stories, each NewsBite provides useful information and tactics on how to ensure your investments are protected with basic hedging techniques," says Reid Stratton, Seven Summits Senior Analyst. "These essential news items contain information that can benefit both the expert and the novice investor who wants to stay ahead of the market by anticipating changes instead of just reacting to them."

For essential information on stocks that may be poised to move, go to:

http://www.go7now.com/nb/0724Y to find all available Seven Summits Strategic Investments NewsBites.

Seven Summits Investment Research is an independent investment research group, which focuses on the U.S. equities and options markets. Our analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best possible investment decisions. For more information go to

http://www.SevenSummitsInvestmentResearch.com. CRD# 137114

Your One Stop Introduction to Futures. Considering venturing into the dynamic futures markets? But where do you start? With the complimentary Intro Guide to Futures Trading, courtesy of MainStreet Trading. Learn the benefits of leverage; see basic trading guidelines and more. Get the Guide.

http://www.marketintelligencecenter.com/MST1

All stocks and options shown are examples only -- not recommendations to buy or sell. Our picks do not represent a positive or negative outlook on any security. Potential returns do not take into account your trade size, brokerage commissions or taxes -- expenses that will affect actual investment returns. Stocks and options involve risk, thus they are not suitable for all investors. Prior to buying or selling options, a person should request a copy of Characteristics and Risks of Standardized Options available from Catherine at 800-698-9101 or at

http://www.cboe.com/Resources/Intro.aspx. Privacy policy available upon request.

SOURCE Seven Summits Investment Research

http://www.SevenSummitsStrategicInvestments.com

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