Time to Short the Most OverPriced Stock in the Market

Titan Machinery has the fundamentals of a PennyStock but trades above $19 a share on NASDAQ.
Insiders Continue to Sell and Officers are getting paid bonuses while the company lays off hundreds of employees in the United States and close nearly 20% of their stores in America.
Company has spent the last years LIQUIDATING INVENTORY at AUCTIONS to generate enough cash to pay themselves and to afford to reward their co-founder and former president a handsome Severance Package after he abruptly resigned.
The Insiders have an equity interest in several outside entities that are being paid via lease agreements with properties that they own.
A CNBC Personality with a huge following who is from the state of Minnesota coincidently appears on twitter with bullish options calls touts on this thinly traded micro-stock that will send stock into a spike higher.
TheStreet website has another guru who also appears to have a crystal ball when predicting this stock's bullish moves is also helpful.
SEC Division of Corporate Finance has made some appearances in TITAN's disclosure filing requesting more transparency from time to time but the SEC and NASDAQ stock trading investigators never seem to take a look at the trading.

Stock is ready to go down for the count! No local Minnesota CNBC Television Personality is going to be able to save this hometown stock much longer pic.twitter.com/KBsI9mPean

— tom renna (@StockPicker908) May 10, 2018

#PennyStock trading @ $19. Best Market Makers on planet!!! plus a CNBC options trading guru w HUGE following makes timely Bullish Options Calls on this thinly traded microcap helps. Insiders Ring cash register. Is $TITN the next $TSLA or $DE or $CAT ? https://t.co/Dw7T89gbR4 pic.twitter.com/GvofzCl64N

— tom renna (@StockPicker908) May 10, 2018

How TITAN MACHINERY Market Makers boosted up the stock to do window dressing on the last day of the 1st Quarter .....Games Games Games $TITN pic.twitter.com/DJLf7nTvFq

— tom renna (@StockPicker908) May 10, 2018

a business closing stores, laying off hard working people ....so the insiders can keep RINGING the Cash Register pic.twitter.com/2qIpzPyDTi

— tom renna (@StockPicker908) May 10, 2018

get in , get out ....follow the insiders and directors pic.twitter.com/hAESQ0mhwI

— tom renna (@StockPicker908) May 10, 2018

and the constant insider selling of course $TITN pic.twitter.com/Ec1LZKv3jP

— tom renna (@StockPicker908) May 10, 2018

Where does all of TITAN Machinery $TITN cash go? Insiders, former president's severance, bonuses, raises, lease payments to outside entities that insiders have equity interest in ...nice game being played pic.twitter.com/ZJaYpuY0iS

— tom renna (@StockPicker908) May 10, 2018

TITAN MACHINERY $TITN NO EPS for trailing 48 months, annual sales down 50% from over $2 Billion, stock up from $7.50 to $20. Closed stores in USA, Laying off Employees they r Creating Jobs overseas #Minnesota #Nebraska #SouthDakota How Many Market Makers are Pushing stock Up? pic.twitter.com/oZiqroS02r

— tom renna (@StockPicker908) May 10, 2018

$TITN Titan Machinery Most Overpriced Stock in the Market #ShortPick Have not earned a profit on ttm since 2014. 4 YEARS of closing stores, revenue declines and mounting Losses. Meanwhile Stock up from $7.50 to $20 LOOK OUT BELOW pic.twitter.com/H1byb5dFmZ

— tom renna (@StockPicker908) May 10, 2018

$TITN TItan Machinery Trades over $440 Million Market as Capital Expenditures contines to grow and exceed Revenues and Sales Growth rates ... pic.twitter.com/kgJuMwnWTb

— tom renna (@StockPicker908) May 10, 2018

best Compliment I ever got , aside from scoring the 132 on an IQ test, $UA $TITN @AlderLaneeggs pic.twitter.com/0zUgb0T6Ei

— tom renna (@StockPicker908) April 12, 2017

SEEKING ALPHA Writer Doesn't See Anything Criminal at Titan Machinery

Most OverPriced Stock Titan Machinery Files Proxy Statement

Jim Cramer: BitCoin is Like Monopoly Money

Cramer Warns on BitCoin!

Cramer: Bitcoin is like 'monopoly money' — this is pure gambling from CNBC.

Cramer: Bitcoin is like 'Monopoly money' — you're better off gambling in Vegas https://t.co/HElzcUnRM2

— CNBC (@CNBC) December 6, 2017

IRS Orders Coinbase Exchange To Handover Data

SEC.gov | SEC Files Fraud Charges in Bitcoin and Office Space Investment Schemes

What Is A Bitcoin?

Jim Cramer on Facebook, Twitter, Amazon, Whole Foods, KB Home, Alcoa & S...

Summer 2016 Newsletter

Complimentary     
Summer 2016 Newsletter 

(issued on July 1,2016 to paid subscribers)

Long Picks :

Symbid (SBID) $0.17  (Equity Crowdfunding)

MeetMe,Inc (MEET) $5.33

Sabre Corporation (SABR) $26.79

Short Picks 

Under Armour (UA) $40.13

Titan Machinery (TITN) $ $11.15

NOODLES (NDLS) $9.78
 

top long pick SYMBID

   Fundamental Charts

 

 

     

Symbid (SBID)  is a highly speculative penny stock trading at a market capitalization of approximately $5 million. It is the ONLY publicly traded equity crowdfunding that I know of in the world.    

Disclaimer. All Newsletters, published by Equities Research, LLC , does not constitute a recommendation by Equities Research, LLC to buy, sell, hold any security, or to follow any particular trading or investment strategy. Also, the information provided should not be construed as an offer, or a solicitation of an offer, to buy or sell securities. An investor's best course of action must be based upon individual circumstances. EquitiesResearch.com shall not be liable for any damages or costs of any type arising out of or in any way connected with your use of The Newsletters, or any of our services.  EquitiesResearch.com, its officers and employees may buy and sell any position in the securities or companies mentioned

Content copyright 2010-2016. Equities Research LLC. All rights reserved

The Deal Platform Is Ideal for Crowdfunding

PIPEs Raise $90 Billion in 2015

"Data is sourced from PrivateRaise, a service of The Deal that tracks PIPEs that raise at least $1 million."

January 15,2015 TheDeal reports 

The PIPEs Report Sees Second Largest Year for Small-Cap Equity Financing Capital Since 2001

source: MarketWatch Published: Jan 29, 2016 1:00 p.m. ET

The Deal Announces Results of FY 2015 M&A League Tables; Record Year for M&A Dollar Value

"The Deal, a business unit of TheStreet, Inc. TST, +1.92% announced the results of its rankings of the top firms involved in mergers and acquisitions for the full year 2015 for deal assignments of $100 million or more that involved a U.S. company. The Deal reported that 2015 set records in terms of dollar value—$1.9 trillion in announced deals—with the majority of transactions coming from pharmaceutical and semiconductor sectors."

TheStreet (NASDAQ: TST $1.30 yield 7.58%) continues to be rated a Strong Buy at Equities Research.

Recently TheStreet has named Larry Kramer (former founder of MarketWatch) to be the company's new chairman and has also recently named a second outside director Bowers Espy to the board.

Equities Research is bullish on the launch of Equity Crowdfunding Boom ready to launch in the United States in May 2016 and believes that TheStreet is well positioned to use TheDeal, BoardEx, RateWatch and flagship TheStreet.com properties to monitor (manage) the deal flow of crowdfunding issuers, investors, analysts, law firms, accountants, institutions, venture capitalists and investment bankers who will comprise the landscape of this new financial technology phenomonon. 

Equities Research Buy Recommendation Q4 2015

GLOBAL CROWDFUNDING MARKET TO REACH $34.4B IN 2015, PREDICTS MASSOLUTION’S 2015CF INDUSTRY REPORT

GLOBAL CROWDFUNDING MARKET TO REACH $34.4B IN 2015, PREDICTS MASSOLUTION’S 2015CF INDUSTRY REPORT

http://www.crowdsourcing.org/editorial/global-crowdfunding-market-to-reach-344b-in-2015-predicts-massolutions-2015cf-industry-report/45376

from CROWDSOURCING.ORG

"Global crowdfunding experienced accelerated growth in 2014, expanding by 167 percent to reach $16.2 billion raised, up from $6.1 billion in 2013. In 2015, the industry is set to more than double once again, on its way to raising $34.4 billion."

How TheStreet (NASDAQ: TST $1.35 dividend yield 7.2%)  properties will grow exponentially during the Crowdfunding Boom.

CROWDFUNDING: PREDICTED TO BECOME THE LARGEST DIGITAL INDUSTRY IN THE WORLD

TOP 4 SHORT PICKS HIT NEW LOWS

SHORT PICKS

Titan Machinery hit an 81 month low this week at $8.55. Equities Research Warned in February 2013 @ $30 

A. Schulman traded at a NEW 52 week low this week under $21 . Equities Research Warned in April 2015 @ $48

Stratasys hit a 52 week low this week under $20. Equities Research warned in February 2013 @ $86 and again in February 2015 @ $50.

CONN hit a new 52 week low this week under $15 . Equities Research warned in December 2013 @ $78

Check out this chart from StockCharts.com for TITN

Check out this chart from StockCharts.com for SHLM

Check out this chart from StockCharts.com for SSYS

Check out this chart from StockCharts.com for CONN

Jim Cramer Says Google’s Stock Is Heading to $800 a Share

Cramer Bullish : GOOGLE (GOOG), Sketchers (SKX), Walgreens, AT and T (T), Intel (INTC), AGN

JIM CRAMER recently filed a Form 4 with Securities and Exchange Commission to report he has added to his position the THESTREET (TST) where he is the founder and a director.
Shares of the TheStreet have gained 10% since his purchase on November 6,2015.

FOLLOW THESTREETTV AT TWITTER

Tweets by @TheStreetTV

More Insider Buying at TheStreet Moves stock Up 14% in 5 days

Since Wednesday of last Week TheStreet (TST) has moved up 14% closing at $1.64 up from a $1.44 5 days ago. The stock has traded over 700,000 shares over this period which is well above its average weekly volume over the last 3 months of 44,000.
(Shares made a 52 week intraday low of $1.40 on Wednesday).

The company reported a 3rd Quarter Profit on Wednesday after the close and 3 directors have bought shares in the company over the last 4 days.
James Cramer added 100.000 shares to his position and new director Larry Kramer has filed two Form 4's initiating a position of 28,450 shares. A 3rd Director Stephen Zacharias initiated filed a SEC Form 4 last night initiating a position  of 35,000 shares.


Equities Research continues to Be Bullish THESTREET

TheStreet current market capitalization is $55 million.
Subtracting the $34 million cash (and marketable securities) the underlying business is valued at $21 million. 
TheStreet reported a 3rd Quarter profit last week for the period ending September 30,2015.
FY2015 the company is expected to generate $68 million in revenue up from $61 million in FY2014.

Brokerage Firm B. Riley has Buy rating on the stock with a $3.75 price target.

November 4,2015 

Alert: TheStreet Reports Q3 Profit

October 5,2015

RateWatch was Acquired by TheStreet in 2007 for $25 Million

October 2,2015 

TheStreet Is for the Individual Investor Who Invests Like an Investment Banker and Venture Capitalist

September 29,2015 

Strong Buy TheStreet (Business Insider Acquired For $442 Million, )

Insider Buying: Founder Jim Cramer Buys 100,000 Shares TheStreet (TST)

Yesterday after the close two directors of TheStreet (NASDAQ: TST $1.57 yield 5.65% ) filed a Form 4.
Founder James Cramer added 100,000 shares of TheStreet to bring his total to over 2.6 million shares.
Cramer is the host of the Mad Money television program on CNBC and is also a co host of CNBC Squawk program, a Live market news show. Cramer also is a contributor to TheStreet as a commentator and is featured on TheStreet online video programs.

Another Director Larry Kramer also filed a Form to report his $10,000 investment in TST.  Larry Kramer (a new Director to the TheStreet)  was the founder of MarketWatch, an online financial  news company similar to TheStreet that was was acquired by CBS for $519 million and is now owned by Dow Jones.  

Equities Research continues to maintain a Strong Buy on TheStreet (TST).

TheStreet current market capitalization is $55 million.
Subtracting the $34 million cash (and marketable securities) the underlying business is valued at $21 million. 
TheStreet reported a 3rd Quarter profit last week for the period ending September 30,2015.
FY2015 the company is expected to generate $68 million in revenue up from $61 million in FY2014.

Brokerage Firm B. Riley has Buy rating on the stock with a $3.75 price target.

November 4,2015 

Alert: TheStreet Reports Q3 Profit

October 5,2015

RateWatch was Acquired by TheStreet in 2007 for $25 Million

October 2,2015 

TheStreet Is for the Individual Investor Who Invests Like an Investment Banker and Venture Capitalist

September 29,2015 

Strong Buy TheStreet (Business Insider Acquired For $442 Million, )

Alert: TheStreet Reports Q3 Profit

After the close , TheStreet (NASDAQ: TST $1.44) reported 3rd quarter profit for the period ending September 30,2015.
TheStreet was expected to report a Q3 loss of ($0.03).

The stock average daily volume over the last 3 months was 34.000, today the stock traded above average volume of 349,000.
The stock has been trading at a 52 week low over the last several weeks. The stock pays a $0.10 a share dividend paid quarterly. At current levels the shares are yielding 6.9%.

Equities Research continues to rate TheStreet TST a Strong Buy.

34 million shares outstanding with $1.44 share price, the total market capitalization is $50 million.
TheStreet has zero debt and Subtracting the $30 million cash from the  $50 million market capitalization, the entire underlying business is currently being valued at $20 million.

Analyst at B. Reilly has a price target of $4.00 on  the shares as of this morning.

NOTES FROM 8K filed after the close: 

TheStreet (TST): Q3 2015 Revenue Increases 14%

●	Third quarter revenue of $16.7 million, up 14% year-over-year.
●	GAAP Net Income of $0.4 million, representing EPS of $0.01 versus a loss of $0.5 million, representing EPS of ($0.02) year-over-year.
●	Subscription Revenue of $13.7 million, up 17% year-over-year.
●	Media Revenue of $3.0 million, up 2% year-over-year.
●	Cash, cash equivalents, restricted cash and marketable securities of $30.3 million.
●	Confirms full-year revenue guidance: $68 to $69 million.
●	Confirms full-year Adjusted EBITDA(1) guidance: $2.8 to $3.2 million. Friday, October 2, 2015 TheStreet Is for the Individual Investor Who Invests Like an Investment Banker and Venture Capitalist

RateWatch was Acquired by TheStreet in 2007 for $25 Million

This Weekend Business Insider Article:
 Online lending is 'disruptive and could be very large' - that has the Fed worried


 Rate Watch can explode through servicing the DISRUPTIVE online lending business! 

If you break down the current value of the TheStreet (TST) $1.65  (6.2% dividend), you will find the underlying business is valued at $23 million.

Current Market Capitalization: $57 million
Cash: $34 million

Total Underlying Business : $23 million
Stock is valued at 1/3rd Sales

The Deal :

• 2012 acquired for $5.8 million (cash). $11.5 million in sales. paid 1/2 Sales

BoardEx:

• 2014 acquired for $21 million (cash). $9.5 million in sales. paid 2X sales

Rate Watch

• 2007 "$25 million, consisting of approximately $16.9 million in cash (net of $3.9 million in debt repayment) and 636,081 shares of unregistered common stock of TheStreet.com." from TheStreet press release 2007

TheStreet 

• founded 1996

This Weekend Business Insider Article: 

Online lending is 'disruptive and could be very large' - that has the Fed worried

I believe Rate Watch can explode through servicing the DISRUPTIVE online lending business! 

$TST "institutional investors hold 63% of TST's total shares and 73% of its float. Insiders and 5% owners hold 13% " https://t.co/MayLpquSt8

— tom renna (@StockPicker908) October 6, 2015

TheStreet Is for the Individual Investor Who Invests Like an Investment Banker and Venture Capitalist

Smart Businessmen (woman) are smart Investors because they invest like businessmen (women).. You buy the businesses for the long term, you don't trade tickers.


 Individual Investors who have an Investment Banking Mentality and a Venture Capitalist Vision can own TheStreet (NASDAQ: TST) for less than a $60 million Market Cap. 

 Company sits with $31million in cash and generates $5 million a month in sales.
 TheStreet is a pioneer in the Online Financial Sector and is a leading digital media company that :

• trades publicly
•   6.2% yield 
• with the stock selling for a near 52 week low under $1.65. 
•  The franchise value alone along with the brand media content and distribution it will continue to grow market share. 
•  Recently Henry Blodget's Business Insider sold for 6 times fwd sales @ $422 million.)
•  THeStreet at 6 times $60 million sales would equate to 600% return on your investment. 
• B. Riley has a Price Target of $4.00 per share
•  If the street was valued at $100 million it would be a near $3 price. With high dividend the bottom may have formed here in the stock.
• Where else will you get 6% on your money

Strong Buy TheStreet (Business Insider Acquired For $442 Million, )

Axel Springer's CEO talks about why he bought a majority stake in @BusinessInsider and invested in @Thrillist. https://t.co/Yy3V2cepH5

— CNBC (@CNBC) September 30, 2015

TheStreet $TST NASDAQ: $1.68 ) 

Business Insider a privately held online financial website announced this morning it will be Acquired for $442 million.

We don't know fundamentals of Business Insider but we know they were acquired for SIX TIMES FWD SALES. TheStreet @ $60 million revenue times 6 would be $360 (High Teens)  million market cap. Beginning of Digital Media

TheStreet has just over 34 million shares outstanding @ $1,68 per share values the market capitalization @ $60 million

If TheStreet was valued in line with Business Insider , $442 million divided by 34 million shares would be $13 a share , 7.7 Times Higher than its current stock price

Shiller on Financial Technology

note TheStreet pays a dividend

The Street has 31 million cash

No Long term debt

Subtracting the $31 million cash from $60 million mkt cap values THeStreet underlying business @ $29 million

EQUITIES RESEARCH : STRONG BUY THESTREET $1.68

Suttmeier's Gold Warning at Top is Legendary

Followers of Equities Research may remember this February 2012 post highlighting Richard Suttmeier's Warning on Gold @ $1781.  Since the warning, the GCM5 futures have declined $583, closing the week @ $1198 (33% lower).

GCM5 chart since the February 24,2012 warning through this week's close. (www.bigcharts.com)

Friday, February 10, 2012

GOLD: Suttmeier's Morning Call is a Must Read

Suttmeier:  "We did have a bubble in gold, the bubble popped and we're now trying to reflate," says Richard Suttmeier of valuengine.com in the attached clip. He says that the recent upward trend isn't as much a return to gold's past glories but rather a bounce to be sold. For Suttmeier the end of gold's rally is neigh." from Yahoo! interview with Jeff Macke
 

If you're invested in GOLD, I recommend that you listen to Richard Suttmeier every morning, noon and night

From February 24,2012 Suttmeier wrote: 

• "Gold reached a year to date high at $1789.5 closing in on my monthly risky level at $1816.4. If gold fails, the next decline below $1700 will
  likely cause a 50-day / 200-day SMA “death cross” as these moving averages are converged at $1669.5 and $1663.5"
  
  

  Follow Richard Suttmeier on Twitter live :

    

Tweets by @Suttmeier

Thanks For Following !!! High Quality Followers

My handle on twitter is @stockpicker908 , my original handle was @GFNNstock

I don't have that many followers, but i really appreciate these bright folks that interact with me. Not only are they smart , but they are good guys/ladies on the up and up.

The Tweet and kind words in my post from Roddy Boyd is the greatest compliment that I ever received in my life! Thank You Roddy Boyd 

Everyone receiving this should visit and bookmark Roddy Boyd's site.

From time to time I'm asked about analysts, diggers whose work I really respect, who do things well. Tom Renna, @GFNNstock, is a must follow
— Roddy Boyd (@BoydRoddy) September 7, 2013

Congrats to a pair of determined stock sleuths: @adakcapital & their call on $CCRN and @StockPicker908 for his long-running work on $TITN
— Roddy Boyd (@BoydRoddy) March 10, 2015

I've got to hand it to $GFFNStock (Tom Renna): He's been warning on $TITN for quite awhile http://t.co/Fso3e4laAg Also not a fan of $SSYS
— Herb Greenberg (@herbgreenberg) May 24, 2013

Hats off to @StockPicker908 for sticking w/his warnings on $TITN all the way down http://t.co/NMAM2lzW9c
— Herb Greenberg (@herbgreenberg) September 9, 2014

This guy makes a serious case that this company is, umm, furry. (@GFNNstock) http://t.co/GyGAcbTYD7
— Roddy Boyd (@BoydRoddy) April 28, 2013

@WillauerProsky @StockPicker908 Bashing shorts, and to a lesser extent journos, almost always a soft signal that company is troubled.
— Roddy Boyd (@BoydRoddy) June 11, 2014

@GFNNstock Nice find. $AOL pays a visit to the #fridaynightdump http://t.co/KjDufkVu7m
— footnoted (@footnoted) August 17, 2013

Hats off to @StockPicker908 for sticking w/his warnings on $TITN all the way down http://t.co/NMAM2lzW9c
— Herb Greenberg (@herbgreenberg) September 9, 2014

Whoa! RT @GFNNstock: @SamAntar @herbgreenberg @footnoted #fridaynightdump CFPB’s Enforcement NORA letter $ESI http://t.co/iin71WE80T
— Herb Greenberg (@herbgreenberg) December 27, 2013

Congrats to @GFNNstock for a great call on $TITN.Here’s what he wrote in April http://t.co/NMAM2lzW9c
— Herb Greenberg (@herbgreenberg) December 5, 2013

@GFNNstock @TheStreet thanks, tommy!
— Herb Greenberg (@herbgreenberg) August 18, 2013

@GFNNstock I have the fan!
— Marc Cohodes (@AlderLaneeggs) February 10, 2014

@GFNNstock @AlderLaneeggs @herbgreenberg that's bc of the Kraft settlement I think. GMCR is the one with the problems
— Barbarian Capital (@BarbarianCap) March 14, 2014

@GFNNstock @Clay_Bear Yes indeedy. A 'short', they say, keeps a fraudster at bay. #hedgefund #forensicaccounting
— WPWAM (@WillauerProsky) December 11, 2013

@GFNNstock great coverage
— john rock (@johnrock4) December 4, 2013

In a market that hasn't made shorting easy @GFNNstock showed the poor fundamentals of $TITN long ago with much alpha - I'm very appreciative
— Voltaire (@PhilipEtienne) December 5, 2013

@GFNNstock yes it's been at tough market for shorts but suspect that party might just be fast approaching
— GradientAnalytics (@EarningsQuality) December 6, 2013

@GFNNstock thanks for 2013. Looking forward to more great analysis in 2014.
— Auditor Carousel (@AuditorCarousel) January 1, 2014

Cool, thank you! A cheery new year for Citron. “@GFNNstock: @WillauerProsky http://t.co/9zvBR1kGKj”
— WPWAM (@WillauerProsky) January 3, 2014

CONGRATS - $TITN: Whether it's up or down, @StockPicker908 consistently updated / shared his SS: thesis & sees the stock today @ new lows.
— Legacy Trades (@Legacy_Trades) August 27, 2014

@GFNNstock @BoydRoddy too funny - still staying short on your prudent analysis Tom - tx for the heads up
— Voltaire (@PhilipEtienne) August 23, 2013

Wow lot of green on my screen today. Only $TITN down on my watch list. Nice call @GFNNstock.
— Nicholas Yee (@nicholas_yee) September 9, 2013

@StockPicker908 you've been on top of this from the "git go"...superb job! I'm impressed
— Intrepid (@RuDauntless) September 9, 2014

@GFNNstock Titan out-muscled Eide Bailly. It's hard to get auditors to sign off on bill and hold accounting.
— Auditor Carousel (@AuditorCarousel) August 13, 2013

@GFNNstock well they do have a proven operating model that bleeds cash!
— Mike Colicchio (@iTravelandDine) September 6, 2013

@StockPicker908 Great work by Tom Renna.....Real good stuff
— john rock (@johnrock4) March 10, 2015

@GFNNstock so good!
— Mad Money On CNBC (@MadMoneyOnCNBC) August 30, 2013

@GFNNstock True, true...
— Tiernan Ray (@barronstechblog) June 26, 2013

Hat tip to @GFNNstock who has been spot on with the $TITN call. I disagreed and didn't sell when it ran up.
— SconnieTrader (@SconnieTrader) May 23, 2013

@GFNNstock eggscellent!
— Douglas Kass (@DougKass) February 20, 2013

@GFNNstock Seems you are alone no longer.
— Tiernan Ray (@barronstechblog) May 17, 2013

@CitronResearch @GFNNstock great coverage, thanks
— john rock (@johnrock4) December 6, 2013

@SamAntar @GFNNstock You did great!
— Francine McKenna (@retheauditors) April 23, 2013

@GFNNstock @retheauditors Thank you for advice today.
— Sam E. Antar (@SamAntar) April 23, 2013

@gfnnstock that was a great call
— howardlindzon (@howardlindzon) December 29, 2012

Tweets by @StockPicker908

Bob Olstein: Earnings vs.Cash Flow

The first step to becoming an investor is to identify the right Master.  Robert Olstein of the Olstein Funds is one of  the most sophisticated investors on all of Wall Street.  Today I am sharing historical articles written about Olstein that investors should examine and learn from.

OLSTEIN: Earnings vs. Cash Flow

New York Times  7/18/1999

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

"EARNINGS VS. CASH FLOW -- Mr. Olstein first examines what a company generates in cash flow from its operations. A company with excess cash flow can raise dividends and survive tough times without being forced to borrow or sell assets.
To calculate a company's cash flow, start with net income. Add back what it has taken in depreciation expenses and accounts payable. Then subtract capital expenditures, inventories and accounts receivable.
Watch out, Mr. Olstein said, if net income is much higher than cash flow. The company may be speeding or slowing its booking of income or costs, perhaps to meet analysts' earnings forecasts."

 Fortune Magazine  6/26/2000

  Eight Warnings You Want to See by Herb Greenberg

"Positive free cash flow. Olstein looks at a company's financials, specifically the 10-Qs and 10-K, and makes a beeline for the statement of cash flows. We're not talking about the stated cash flow from operations, investing activities or financings. We're talking about cash flow from operations minus capital expenditures--the amount of usable cash the company actually generates, which can be used to buy back stock, pay dividends, make acquisitions, and grow the business."

 TheStreet.com 6/25/01

Fund Junkie by Ian MacDonald

" Our main defense against risk is only buying companies that either are currently generating excess cash flow, or will in the next three years."

Financial Advisor Magazine August 2001

Staying Alert Pays Off by Maria Brill

"To Olstein, being right means finding companies with excess cash flow that are selling at inexpensive levels because investors are tuning them out. "Cash flow is the oil that lubricates the corporate engine," he observes."

 The Washington Post 2/17/2002

To Avoid an Enron, Look at Cash Flow by James K. Glassman

"By concentrating on cash, investors can learn enough about a company to eliminate it as a possible investment. FOr example, if you want to get a quick-and-dirty reading, look not at a firm's "income statement" but at a more obscure tables of numbers called its "statement of cash flows".

New York Times 11/14/2004

Sometimes It Takes a Sherlock by Gretchen Morgenson

""Everyone looks at conventional price-earnings ratios but that doesn't tell you anything about the deviation between cash flow and reported earnings," Mr. Olstein said."

 Financial Advisor Magazine June 2006

Forensic Accounting by Jeff Schlegel

"Olstein believes that cash--particularly free cash flow--is king because he thinks it's a truer measure of a company's underlying performance. He and his staff analysts look for companies trading at a discount to free cash flow. Lack of free cash flow is one reason why he doesn't like (a sector) ..."

 CFA Institute 12/4/2007

Free Cash Flow & Quality of Earnings by Fred H. Speece, Jr. CFA

BloombergBusinessweek 8/17/2009

Behind Bob Olstein's Comeback by Karyn McCormack

"....buy quality companies that have "wide moats" (in other words, "hard to compete with out of the box"), have been generating free cash flow throughout the financial crisis, and have a great balance sheet to withstand any issues."

 New York Times 1/9/2010

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

As the market goes higher, it becomes more important to measure the quality of corporate earnings, he said. You have to look behind the numbers.

Adjustments that investors need to make now, in Mr. Olstein's view, are a result of disparities between a company's reported earnings and its excess cash flow. Earnings are what investors focus on, but because these figures include noncash items, based on management estimates, the bottom line may not tell the whole story.
Cash flow, on the other hand, is actual money that a company generates and that its managers can use to invest in the business or pay out to shareholders.

SOME of the widest gulfs between earnings and cash flows, Mr. Olstein said, are showing up the ways companies account for capital expenditures."

 New York Times 9/11/2010

A Wealth of Choices for a Value Investor by Jeff Sommer

Cash is king, he says. He spends a lot of time crunching numbers in a search for strong cash flow, and his winnowing process goes something like this:
First, he scrutinizes a company's financial reports in an effort to determine whether they paint an accurate picture. In this work, he has considerable expertise: he was an auditor with the old Arthur Andersen & Company, and then, in the 1970s, was co-author of The Quality of Earnings, a financial newsletter that, in its day, was perhaps the foremost authority on spotting the gray areas of corporate accounting.
If you're analyzing a company, he says, you first have to understand what they're really earning, as opposed to what they say they're earning.

 American Association of Individual Investors  October 2010

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

"the forensic analysis we undertake
to analyze a company's results and the quality of its
earnings for valuation purposes.
1. Using the company's cash fl ow statements, we begin by
reconciling the difference between free cash fl ow and
reported earnings under accrual accounting. (Accrual
accounting records revenues, expenses and income
when the transaction occurs, as opposed to when
the cash is actually received or spent.) The smaller
the difference between free cash fl ow and reported
earnings, the higher the quality of earnings."

 Barron's 4/30/2011

Depreciation, An Appreciation by Lawrence C. Strauss

"He grows more concerned when a company's reported earnings significantly exceed its cash flow,..."

 Value Investor  4/30/2012

  Strengthin Numbers

"Describe where you look first in researching
a company's financials.
RO: We begin by reconciling the difference
between free cash flow and reported
earnings under accrual accounting. The
smaller the difference, the higher the
quality of earnings. The bigger the difference,
the more work we have to do to
understand the makeup and sustainability
of free cash flow."

OlsteinShareholder Letters