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

Thursday, July 17, 2008

Next Inning Technology Previews Earnings for SanDisk, PMC-Sierra, Skyworks Solutions, and Anadigics

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PRINCETON, N.J., July 17, 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 SanDisk (Nasdaq: SNDK), PMC-Sierra (Nasdaq: PMCS), Skyworks Solutions (Nasdaq: SWKS) and Anadigics (Nasdaq: ANAD).

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=prn690

In his earnings previews, McWilliams wrote: "The fact is there was no good reason earlier this year for the price of Skyworks to fall so significantly in sympathy with Anadigics, which was suffering from company-specific problems..."

 McWilliams also looks at these
   topics: -- What does McWilliams think Wall Street is missing in the SanDisk story?

-- We all know that Skyworks has a design in the iPhone. What other hot new phone design has McWilliams learned we'll hear about Skyworks winning?

-- Last week, McWilliams debunked rumors that Broadcom was about to take PMC-Sierra out in the GPON space. This week he picked up some valuable news about PMC-Sierra's largest GPON customer. What was the news and how might it affect PMC-Sierra's Q3 guidance?

-- McWilliams encouraged readers to buy Anadigics when it dipped into the $7s on Monday. What's McWilliams' fair value target for Anadigics?

Founded in September 2002, Next Inning's model portfolio has returned 226% since its inception versus 76% 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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