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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Friday, July 11, 2008

Zacks' Low Price Stocks strategy highlights: AeroCentury, First Place Financial, America's Car-Mart and HopFed Bancorp.

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CHICAGO, Jul 11, 2008 (BUSINESS WIRE) ----Looking for stocks priced below $20? How about companies with discount valuations and a track record of a positive trend in earnings estimates revisions? The Low Price Stocks Profit Track Strategy identifies such stocks. This screen generated a +56.5% return in 2006. Four stocks meeting this screen's exclusive criteria are: AeroCentury Corp. (AMEX: ACY), First Place Financial Corp. (NASDAQ: FPFC). America's Car-Mart Inc. (NASDAQ: CRMT) and HopFed Bancorp Inc. (NASDAQ: HFBC). View the entire list of stocks for the Low Price Stocks Profit Track at http://at.zacks.com/?id=2140.

Here are details about four companies currently identified by the Low Price Stocks Profit Track:

AeroCentury Corp. (AMEX: ACY) is a Zacks #1 Rank company that reported first quarter earnings per share of 18 cents, which beat the consensus by 205.88%. The company enjoys a low per share price of $16.20 and a 12-month trailing EPS of $1.66. In addition, ACY sports a price/sales ratio of .84. ACY is an operating lessor and finance company that specializes in leasing used turboprop aircraft and engines.

First Place Financial Corp. (NASDAQ: FPFC) is a holding company, whose principal business consists of accepting retail deposits from the general public and investing these funds. It sports a Zacks #2 Rank and a per share price of $8.81. In the first quarter, the company reported earnings of 30 cents per share, compared to 24 cents in the previous quarter. Analysts expected earnings of 25 cents. FPFC has a price/sales ratio of .72 and a 12-month trailing EPS of $1.25, which satisfy the requirements for the Low Price profit track.

America's Car-Mart Inc. (NASDAQ: CRMT) operates automotive dealerships and is one of the largest automotive retailers in the United States. The company has a per share price of slightly below $20 and a price/sales ratio of .84, thus meeting this screen's parameters of a price between $5 and $20 with a price/sales ratio of less than 1. In addition, CRMT has a 12-month trailing EPS of $1.26. The Zacks #1 Rank company reported fourth-quarter earnings of 51 cents per share, which exceeded analysts' expectations of 28 cents.

HopFed Bancorp Inc. (NASDAQ: HFBC) reported first quarter earnings of 42 cents per share, which significantly exceeded analysts' expectations of 24 cents. This Zacks #1 Rank sports a price/sales ratio of .77 and a per share price of $12.41, earning its place on the Low Price profit track. Moreover, HFBC enjoys a 12-month trailing EPS of $1.28. HFBC serves as a savings and loan holding company for Hopkinsville Federal Savings Bank.

Discover all the current stocks currently on the Low Price Stocks Profit Track at: http://at.zacks.com/?id=2141.

About Profit Tracks

What is a "Profit Track"? Each Profit Track is a successful stock picking strategy with proven results through the Bear Market of 2001-2002 and the Bull run started in 2003. On Zacks.com we have created these nine unique screens to offer investors great strategies to potentially outperform the market in the years ahead. In 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +56.5% followed by the Discounted Fundamental screen with a +34% return. To see all nine strategies along with philosophy, past performance and current stocks, go to http://at.zacks.com/?id=1838.

All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this screening strategy, but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to this powerful stock picking tool. Learn more about the Research Wizard free trial offer and our new special report "Top 10 Stock Screening Strategies" at http://at.zacks.com/?id=4598

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4599

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE: Zacks.com

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   Contact: Alla Kushner Phone: 312-265-9208 Email: pr@zacks.com

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   As of Monday, 07-07-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND
   on 06-30-2008 for ACY @ $11.81. As of Monday, 07-07-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition
   system, indicated a DOWNTREND on 02-22-2008 for FPFC @ $12.33. For more information on SmarTrend, contact your market data
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