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, June 27, 2008

The Brualdi Law Firm Announces Class Action Lawsuit Against IndyMac Bancorp, Inc.

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Comtex

NEW YORK, Jun 27, 2008 (PrimeNewswire via COMTEX) ----The Brualdi Law Firm P.C. announces that a lawsuit has commenced in the United States District Court for the Central District of California on behalf of purchasers of IndyMac Bancorp. Inc. ("IndyMac" or "the Company") (NYSE:IMB) common stock during the period between August 16, 2007 and May 12, 2008 (the "Class Period").

No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased IndyMac common stock during the period described above, you have certain rights, and have until no later than 60 days from June 27, 2008 in which to move for Lead Plaintiff status. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1877 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/

The complaint charges IndyMac and certain of its officers and directors with violations of the Securities Exchange Act of 1934. IndyMac is the holding company for IndyMac Bank, F.S.B., a hybrid thrift/mortgage bank. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. Specifically, defendants downplayed and concealed IndyMac's growing exposure to non-performing assets, particularly loans in its pay-option adjustable-rate mortgages ("Option ARM") and homebuilder construction portfolios, and made numerous positive representations regarding the Company's capital position to alleviate investors' fears concerning the Company's capital erosion. As a result of defendants' false statements, IndyMac stock traded at artificially inflated prices during the Class Period, reaching a Class Period high of $24.55 per share in October 2007.

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: The Brualdi Law Firm

The Brualdi Law Firm P.C. Sue Lee, Esq. (212)-952-0602
   (877)-495-1877 slee@brualdilawfirm.com

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