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.

Home / Markets / Industries / Technology

Wednesday, July 23, 2008

Next Inning Technology Previews Earnings for Citrix Systems, EMC, Intersil, and Qualcomm

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PRINCETON, N.J., July 23, 2008 /PRNewswire via COMTEX/ ----Next Inning Technology Research (http://www.nextinning.com), a subscription service focused on semiconductor and technology stocks, announced it has updated outlooks for Citrix Systems (Nasdaq: CTXS), EMC (NYSE: EMC), Intersil (Nasdaq: ISIL) and Qualcomm (Nasdaq: QCOM).

In a series of reports released in March, Editor Paul McWilliams advised readers it was time to buy specific tech stocks. His selections went up considerably with one very near doubling. However, in May and early June, he warned readers it was time to take some profits and prepare for the summer swoon he saw coming. Now that tech stocks have taken a significant hit, is it time to start buying again? Click to read his updated thoughts and enjoy a 21-day free trial of Next Inning:

https://www.nextinning.com/subscribe/index.php?refer=prn694

In his earnings preview, McWilliams wrote: "Following Qualcomm's calendar Q3 2007 earnings report, I posted my brief opinions of the news along with my take on the carnage the market saw the week ending November 9th. In that report, I noted that Qualcomm merited accumulation at its then current price just under $38..."

McWilliams also looks at these topics:

-- Why is Qualcomm's acquisition of Firethorn an important data point for Qualcomm investors? At what price would McWilliams consider adding shares of Qualcomm? What is his price target for Qualcomm?

-- Does Citrix merit accumulation ahead of its upcoming earnings report?

-- Is EMC attractively priced ahead of earnings? Might VMWare investors be better off considering majority owner EMC instead?

-- Is there short-term upside potential for Intersil? Does McWilliams see Intersil seeking out acquisitions in the near future? What company does he think Intersil should consider?

Founded in September 2002, Next Inning's model portfolio has returned 226% since its inception versus 78% for the NASDAQ.

About Next Inning:

Next Inning is a subscription financial newsletter focused on technology stocks. Editor Paul McWilliams is a 20+-year industry veteran.

NOTE: This release was published by Indie Research Advisors, LLC, a registered investment advisor with CRD #131926. Interested parties may visit adviserinfo.sec.gov for additional information. 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.

CONTACT: Marcie Martin Next Inning Technology Research, +1-888-278-5515

SOURCE Indie Research Advisors, LLC

http://www.nextinning.com

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