Barron's Features Olstein Fund's Cash Flow Specials

Robert Olstein, the founder of the Olstein Funds, is a top money manager on Wall Street for over four decades. The Olstein Funds have always been a favorite of mine here at Equities Research.

This weekend Barron's featured  Eric Heyman, the co-manager of the Olstein Strategic Opportunities fund (ticker: OFSAX ), with his Top 5 Stock Picks: Unloved, but Cash Rich (beaten-down stocks producing lots of cash flow.)

•  Three small-cap stocks he likes right now are Integra LifeSciences ( IART ), Wesco International ( WCC ) and ABM Industries ( ABM ). 
•   Lifetime Brands ( LCUT )
•  Daktronics ( DAKT )

Equities Research Archives: 

• Olstein: "Free Cash Flow is Air of Corporations"

• Olstein Funds Recommended Reading

• Bob Olstein Favorite Metric: FREE CASH FLOW

   

  (click here) OLSTEIN: Earnings vs. Cash Flow

  INVESTING, When a Rosy Picture Should Raise a Red Flag by Gretchen Morgenson

    Eight Warnings You Want to See by Herb Greenberg

   Fund Junkie by Ian MacDonald

   Sometimes It Takes a Sherlock by Gretchen Morgenson 

  
  

   Fair Game:Why All Earnings Are Not Equal by  Gretchen Morgenson

  
  

   American Association of Individual Investors  October 2010

  What You Can Learn from Shareholder Letters by Eric R. Heyman

   Depreciation, An Appreciation by Lawrence C. Strauss

   Olstein Shareholder Letters

  
  

  
  

Olstein Says "Cash is King"

In the New York Times this weekend, Jeff Sommers published an article "Beating the Market, A Reachable Goal" , where he interviews money manager Bob Olstein.

"Mr. Olstein looks for stocks that are under appreciated, and that are strong in a metric he has always favored: “free cash flow yield.” (It is cash, after subtracting capital expenditures and working capital, divided by market capitalization.) “Cash is king,” he says. “That’s what you’re paying for when you buy a stock — the ability to generate cash. But few people even bother with it these days.” He says he prefers “boring companies” — if their free cash flow excites him"

Equities Research archives of Bob Olstein articles 

• OLSTEIN Earnings vs Cash Flow

• Olstein Shareholder Letters 

• (Olstein)Eight Warnings you want to See by Herb Greenberg 2000

• There are Nice People on Wall Street

• Olstein BullishOn Dupont & Cisco

• Olstein Eyes Microsoft & Intel

• Olstein: "Free Cash Flow is Air of Corporations"

 

Bob Olstein Favorite Metric: FREE CASH FLOW

This afternoon money manager appeared on CNBC-TV to discuss his three top picks:

• Harmon International (NYSE: HAR)
• General Electric (NYSE: GE)
• Dupont (NYSE: DD)

Olstein:"Free Cash Flow is the Ultimate Arbiter of Valuation".




More on Free Cash Flow from Bob Olstein can be found:

• Equities Research: Olstein Funds Recommended Reading
• Equities Research: Olstein: "Free Cash Flow is Air of Corporations"
• Equities Research: Bob Olstein's Focus is Cash Flow
• Equities Research: Olstein Bearish on AMZN: A Look at ...
• Equities Research: Olstein: Earnings vs. Cash Flow
• Equities Research: Olstein Bullish on Dupont & Cisco
• Equities Research: Olstein Eyes Microsoft & Intel

My Barber: "Joe the Barber"

Caterpillar Doesn't Generate Enough Free Cash Flow To Cover Dividend

Yesterday Jim Chanos announced his Short pick Caterpillar (NYSE: CAT)

A look at the free cash flow for Caterpillar for the trailing twelve month ending March 31,2013:
Dividend Paid ttm ending 3/31/2013:  $1,329,000,000.00
Free Cash Flow ttm end 3/31/2013:   $1,171,000,000.00

FCF only generated 88% of dividend! 

click to see enlarged numbers

Jim Chanos of Kynikos is short Caterpillar: http://t.co/xjpbaDCZR8 $CAT #DeliveringAlpha
— CNBC (@CNBC) July 17, 2013

$cat Caterpillar Slips: Chanos is Short as Commodity ‘Super Cycle’ Comes to an End http://t.co/5dfnMfsrV8 via @barronsonline
— tom renna (@GFNNstock) July 18, 2013

$cat from NYTIMES Chanos Makes Bet Against Caterpillar http://t.co/L1wkIZ4HIc
— tom renna (@GFNNstock) July 18, 2013

Equities Research

Chanos Archives:
Equities Research: Chanos Talks Cash Flow
Equities Research: Chanos Sees Cash Flow Declining at HPQ
Equities Research: A Gloomy View of China
Equities Research: Jim Chanos: Psychology of short selling; China ...

Olstein: "Free Cash Flow is Air of Corporations"

Valuation vs. Cash Flow

This week my favorite mutual fund manager Bob Olstein appeared on CNBC-TV explaining the most important metric, "free cash flow", when evaluating an underlying business. After finding a business with great cash flow, Olstein then focuses on "Price,Price, Price" of the stock's relation to cash flow.

 
Olstein shared his view on Macy (M), Amazon (AMZN), Microsoft (MSFT), Johnson & Johnson (JNJ, Cisco (CSCO), Lowes (LOW), Dupont (DD), Harman (HAR), Lennar (LEN).
(click to Stock Name to view Equities Research archives with Stockdiagnostics cash flow charts)

click Equities Research Archives of Bob Olstein

• OLSTEIN Earnings vs Cash Flow
• Olstein Shareholder Letters 
• (Olstein)Eight Warnings you want to See by Herb Greenberg 2000

• There are Nice People on Wall Street
• Olstein BullishOn Dupont & Cisco

Olstein Eyes Microsoft & Intel

Olstein Bullish on Dupont & Cisco

Bob Olstein on CNBC TV talking Cisco & Dupont

Olstein Eyes Microsoft & Intel

Bob Olstein on Bloomberg TV talking Free Cash Flow Yield