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 10, 2008

Next Inning Technology Updates Outlooks for EMC, Citrix Systems, Arris Group, and Harmonic

Email this Story | Respond to Editor | Print

Comtex

PRINCETON, N.J., July 10, 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 EMC (NYSE: EMC), Citrix Systems (Nasdaq: CTXS), Arris Group (Nasdaq: ARRS) and Harmonic (Nasdaq: HLIT).

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=prn685

In response to member inquiries, McWilliams wrote: "The primary problem Arris has faced in recent quarters has been the emergence of competition in the E-MTA market, particularly at Comcast where Arris was the sole source provider prior to calendar Q4 2007. In its last quarterly conference call, Arris advised listeners that it expected the business to rebound in calendar Q2 and, consistent with my expectations, it evidently didn't..."

McWilliams also looks at these topics:

-- In the aftermath of VMWare's big plunge, how should investors look at EMC, which owns the majority of VMWare? Should investors now be wary of Citrix, another stock in the virtualization sector?

-- Is the situation at Arris as bad as the price now suggests? Might a buying opportunity have opened up?

-- Should Harmonic investors be concerned about the Arris revenue shortfall? Does McWilliams prefer Harmonic in the sector?

Founded in September 2002, Next Inning's model portfolio has returned 224% since its inception versus 73% 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

Copyright (C) 2008 PR Newswire. All rights reserved
   ********************************************************************** As of Sunday, 07-06-2008 23:59, the latest Comtex SmarTrend�
   Alert, an automated pattern recognition system, indicated a DOWNTREND on 06-26-2008 for EMC @ $15.89. For more information
   on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex
   News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights reserved.