Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.
Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Tuesday Morning (Nasdaq: TUES ) , whose recent revenue and earnings are plotted below.
Top Forestry Companies To Watch In Right Now: MYR Group Inc.(MYRG)
MYR Group Inc., through its subsidiaries, provides electrical construction service in the continental United States. The company operates in two segments, Transmission and Distribution, and Commercial and Industrial. The Transmission and Distribution segment provides design, engineering, procurement, construction, upgrade, maintenance, and repair services. Its services include the construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems; and emergency restoration services in response to hurricane, ice, or other storm related damages. This segment?s customers include investor-owned utilities, municipal utilities, cooperatives, federally-owned utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors. The Commercial and Industrial segment provides electrical contracting services for commercial and industrial construction in the western United States. It offers electrical contracting services for airports, hospitals, data centers, hotels, casinos, arenas, convention centers, manufacturing plants, processing facilities, and transportation control and management systems. This segment?s customers include general contractors, commercial and industrial facility owners, local governments, and developers. MYR Group Inc. was founded in 1891 and is headquartered in Rolling Meadows, Illinois.
Advisors' Opinion:- [By CRWE]
MYR Group Inc. (Nasdaq:MYRG), a leading specialty contractor serving the electrical infrastructure market in the United States, reported that the Company will be attending the 2012 Wedbush Securities Clean Technology & Industrial Growth Management Access Conference. The conference will take place in San Francisco, California, at The Westin Hotel, September 12, 2012.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on MYR Group (Nasdaq: MYRG ) , whose recent revenue and earnings are plotted below.
Top Forestry Companies To Watch In Right Now: National Steel Corporation(SID)
Companhia Siderurgica Nacional primarily operates as an integrated steel producer in Brazil and Latin America. The company principally produces carbon steel and various steel products. Its products include slabs, which are semi-finished products used for processing hot-rolled, cold-rolled, or coated coils and sheet products; hot-rolled products that comprise heavy-gauge hot-rolled coils and sheets, and light-gauge hot-rolled coils and sheets; cold-rolled products, including cold-rolled coils and sheets; and galvanized products consisting of flat-rolled steel coated with zinc or a zinc-based alloy. The company also offers tin mill products, which consist of flat-rolled low-carbon steel coils or sheets, such as tin plate, tin free steel,low tin coated steel, and black plate products. In addition, it engages in mining business by owning iron ore, limestone, dolomite, and tin mines comprising the Namisa property, Casa de Pedra mine, Arcos mine, and Santa Barbara mine; and invo lves in logistics business that includes railway and port facilities. Further, the company produces and sells cement; and engages in the generation of power plants. It sells its steel products as a raw material for various manufacturing industries, including the automotive, home appliance, packaging, construction, and steel processing industries. The company offers its products to customers directly through its sales force, as well as through distributors for subsequent resale. It also exports its products to Europe, Latin America, Asia, and North America. Companhia Siderurgica Nacional was founded in 1941 and is headquartered in Sao Paulo, Brazil.
Advisors' Opinion:- [By Zacks]
Other players in the steel industry worth considering are Companhia Siderurgica Nacional (NYSE: SID), ArcelorMittal (NYSE: MT) and AK Steel holding Corporation (NYSE: AKS). While Companhia Siderurgica Nacional and ArcelorMittal carry a Zacks Rank #1 (Strong Buy), AK Steel has a Zacks Rank #2 (Buy).
Best Information Technology Stocks To Invest In Right Now: ARMOUR Residential REIT Inc (ARR)
ARMOUR Residential REIT, Inc.( ARMOUR), incorporated on February 5, 2008, is an externally-managed Maryland corporation managed by ARMOUR Residential REIT, Inc. The Company invests primarily in hybrid adjustable rate, adjustable rate and fixed rate residential mortgage backed securities (RMBS). These securities are issued or guaranteed by a United States Government-sponsored entity (GSE), such as the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac), or are guaranteed by the Government National Mortgage Administration (Ginnie Mae) collectively, Agency Securities. From time to time, a portion of its portfolio may be invested in unsecured notes and bonds issued by United States Government-chartered entities, collectively, Agency Debt. As of December 31, 2012, Agency Securities account for 100% of its portfolio.
The Company seeks long-term investment returns by investing its equity capital and borrowed funds in its targeted asset class of Agency Securities. The Company�� assets have been invested in Agency Securities or money market instruments, primarily deposits at federally chartered banks. The Company borrows against its Agency Securities using repurchase agreements. Its borrowings generally have maturities that may range from one month or less, up to one year, although occasionally it may enter into longer dated borrowing agreements to more closely match the rate adjustment period of its Agency Securities.
Advisors' Opinion:- [By Amanda Alix]
Mortgage REITs begin their plunge
It didn't take long for investors to show their concern, and by mid-afternoon yesterday, Annaly Capital (NYSE: NLY ) and fellow agency players American Capital Agency (NASDAQ: AGNC ) and Armour Residential (NYSE: ARR ) had dropped sharply after the opening bell. By the market's close, each fell by 0.69%, 0.87%, and 1.23%, sequentially. - [By Zain Zafar]
In terms of book value loss, Hatteras' performance can be compared to that of ARMOUR Residential (NYSE: ARR ) , whose book value per share declined by 19% from the previous quarter. However, ARMOUR Residential follows a strategy of investing primarily in long-duration fixed-rate MBSes, which can carry much larger interest rate risk.
Top Forestry Companies To Watch In Right Now: Liberty Property Trust (LRY)
Liberty Property Trust is a publicly owned real estate investment holding trust. Through its subsidiary, it provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties. The firm invests in industrial properties including various warehouse, distribution, service, assembly, light manufacturing, and research and development facilities. Its office properties include multi-story and single-story office buildings located principally in suburban mixed-use developments or office parks. Liberty Property Trust was founded in 1972 and is based in Malvern, Pennsylvania.
Advisors' Opinion:- [By Brad Thomas]
Other REITs mentioned: (O), (NNN), (STAG), (DCT), (EGP), (PDM), (DRE), (LRY)
Source: Chambers Street: More Liquidity Magic On The Way In REIT-DomDisclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)
Top Forestry Companies To Watch In Right Now: Rvue Holdings Inc (RVUE)
rVue Holdings, Inc., incorporated on November 12, 2008, is an advertising technology company and operate rVue, a demand-side platform (DSP) for planning, buying and managing digital place-based networks and digital billboards and signage (DOOH) advertising. It provides media services, including an online, Internet based DSP that connects advertisers and/or advertising agencies with third party DOOH media or networks, that allows the advertiser to create a targeted advertising campaign and media plan, and negotiate that media plan simultaneously with all the third-party networks selected. The Company provides network services and receive fees under contract or on a monthly basis, from Accenture.
The Company's rVue DSP is accessible via the Internet. Through rVue, once an advertising campaign has been agreed to between the advertiser and the DOOH network owner, the DOOH networks receive the display advertising to be shown on their installed base of digital media displays. rVue allows programming and advertising to be customized for display in specific venues, at specific times, and for demographic targeting. It provides the tools for advertisers and advertising agencies to customize campaigns for details as specific as location, customer preference, product availability, current events and other needs. It provides Proof-of-Play analytics and the network statistics necessary to monitor advertising on the networks and assist in evaluating the performance or refinements required for an advertising campaign, in some cases real time. As of December 31, 2012, 182 networks, which consists approximately 770,000 screens and delivering over 250 million daily impressions representing 50 market areas accessible through rVue.
In connection with the Transaction, the Company acquired from Argo all of its assets related to the rVue business, which included all of the common stock of rVue, Inc. as well as software, contracts and technology. Such software and technology included the rVue DSP t! echnology and software as well as legacy rVue client and server software, which allows an end user to manage and operate a DOOH network. The client software is used to manage each screen or site and the server software is used to manage the client software. The Company�� services provide a digital advertising solution that streamlines the process of planning, buying and optimizing display advertising on DOOH display networks. rVue is designed to simplify the process of buying and selling digital display ads while connecting all the market players networks, advertisers, agencies, partners and developers from a unified platform to do business more efficiently and effectively.
Advisors' Opinion:- [By CRWE]
Today, RVUE has shed (-0.25%)�0.000 at $.199 with�5,000 shares in play thus far (ref. google finance Delayed: 9:39AM EDT July 17, 2013), but don�� let this get you down.
rVue Holdings, Inc. previously reported its financial results for the full year ended December 31, 2012.
Summary Results for the Full Year of 2012: Total revenue was $602,363 for fiscal 2012; down slightly from $643,483 in the prior year. Core Fees: This is the focus of our business and source of future growth. Core revenue for the years ended December 31, 2012 and 2011 were, $197,444 and $203,276, respectively.
Non-Core Fees: For the years ended December 31, 2012 and 2011 were $404,919 and $440,207, respectively. The decline was due to the end of a management relationship with Auto Nation. This trend will continue in 2013 as we focus more resources on core business efforts. In addition the Mattress Firm merged with Mattress Giant and we respectfully agree not to renew for 2013 (this represented approximately $230,000 in revenue). - [By CRWE]
Today, RVUE remains (0.00%) +0.000 at $.14 thus far (ref. google finance Delayed: 11:58AM EDT August 28, 2013).
rVue Holdings, Inc. previously reported its financial results for the quarter ended March, 31 2013.
Summary Results for First Quarter of 2013: Total revenue was $137.5K for the first fiscal quarter of 2013; up slightly from $131.5K the prior year.
Core Revenue: This is the focus of our business and source of future growth. Core revenue for the quarter ended March 31, 2013 was $79.3K up sharply (+63K) over Q1 2012 when it was $16.3K. Non-Core Revenue: For the quarters ended March 31, 2013 and 2012 were $58.2K and $115.2K, respectively. As stated earlier, the decline was due to the end of a management relationship with Auto Nation. This downward trend in non-core revenue is expected to continue through 2013 as we focus more resources on core business efforts. In addition, the Mattress Firm merged with Mattress Giant and we respectfully agreed not to renew for 2013.
Top Forestry Companies To Watch In Right Now: Sify Technologies Limited(SIFY)
Sify Technologies Limited provides enterprise and consumer Internet services primarily in India. The company offers various corporate network/data services comprising e-commerce and network connectivity solutions, such as end-to-end services network, application, and security services; voice origination and termination services; co-location and managed hosting services; and system integration services for data centre build, hardware distribution, security solutions, and turnkey projects. It also provides application services, including SLEMS and Microsoft Exchange messaging platforms; I-test for online assessment and LiveWire, which enable management of training processes across the organization; document management system for the management of documents electronically; and Forum, a forward supply chain solution. In addition, the company operates e-Ports that offer browsing, chat, email, gaming, utility bill payment, travel ticketing, hotel booking, mobile recharge, Intern et telephony, and online share trading services; and portals, which provide news, views, reviews, interactions, and services in the areas of movies, sports, finance, food, videos, astrology, online games, shopping, and travel, as well as offers content offerings and broadband services. Further, it provides infrastructure management services, such as network management, datacenter and helpdesk outsourcing, desktop and storage outsourcing, IT security outsourcing, LAN and WAN outsourcing, database and telecom outsourcing, and application monitoring and management services to automotive, chemical, media, and financial enterprises; and virtualization design, integration, and deployment services for servers, storage, networks, and end user clients. Sify has approximately 1,278 e-Ports in 200 towns and cities; and serves 1,06,000 broadband subscribers through 1500 cable TV Operators. The company, formerly known as Sify Limited, was founded in 1995 and is based in Chennai, India. Advisors' Opinion:
- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Technology stocks gained Tuesday, with Ku6 Media Co (NASDAQ: KUTV) leading advancers. Among leading tech stocks, gains came from Rubicon Technology (NASDAQ: RBCN), Bitauto Holdings (NYSE: BITA) and Sify Technologies (NASDAQ: SIFY).
Top Forestry Companies To Watch In Right Now: Western Gas Equity Partners LP (WGP)
Western Gas Equity Partners, LP, incorporated on September 11, 2007, was formed to own three types of partnership interests in Western Gas Partners, LP (WES). WES is a limited partnership formed by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. As of December 31, 2011, the Company had no independent operations. On January 13, 2012, WES acquired 100% interest of Mountain Gas Resources LLC (MGR). On August 1, 2012, WES acquired 24% interest of Chipeta Processing LLC (Chipeta).
WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil for Anadarko, as well as third-party producers and customers. The assets of WGP, through its partnership interests in WES, include thirteen gathering systems, seven natural gas treating facilities, ten natural gas processing facilities, two NGL pipelines, one interstate gas pipeline, one intrastate gas pipeline, and three separate interests in Fort Union, White Cliffs Pipeline, LLC (White Cliffs) and Rendezvous Gas Services, LLC (Rendezvous). These assets are located in East and West Texas, the Rocky Mountains (Colorado, Utah and Wyoming), and the Mid-Continent (Kansas and Oklahoma). WES also has facilities under construction in South Texas and northeast Colorado. During the year ended December 31, 2011, WES completed the construction of a cryogenic processing train at its Chipeta facility , which had a designed capacity of approximately 300 million cubic feet of natural gas per day and was placed into service in October 2012.
Advisors' Opinion:- [By Jonas Elmerraji]
The exact same setup is potentially giving traders a reason to jump into shares of $8.5 billion midstream gas company Western Gas Equity Partners (WGP). Just like Flotek, WGP is forming a textbook channel up. And this week, Western Gas is testing trendline support.
It's a little too early to call WGP's trendline buyable here. At some point, all trends eventually fail -- and when this one does, you don't want to be left holding the bag. A bounce this week will be a good indication that WGP can still catch a bid at this price level. When and if that happens, I'd recommend keeping a tight protective stop in place just below WGP's most recent swing low at $38.
While the 50-day moving average has been crossing paths with WGP quite a bit in the last month, I'd recommend ignoring it. The average hasn't acted as a meaningful support or resistance level to date. In the case of this particular name, it's just not technically relevant.
Top Forestry Companies To Watch In Right Now: Kohl's Corporation(KSS)
Kohl?s Corporation operates department stores in the United States. The company?s stores offer private and exclusive, as well as national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares primarily to middle-income customers. As of January 29, 2011, it operated 1,089 stores in 49 states. The company also offers on-line shopping on its Web site at Kohls.com. Kohl?s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.
Advisors' Opinion:- [By Sean Williams]
Department store
This was perhaps the biggest shock of all, as Kohl's (NYSE: KSS ) topped Macy's�for the top spot in department store brand loyalty. Given Kohl's recently weak same-store sales figures, this may not make a lot of sense, but that has more to do with a weakness in the overall economy than a weakness in the company's operational model. Kohl's relies on discounts and promotions, as well as its Kohl's charge card, to bring customers into its stores and keep them hooked. Furthermore, Kohl's online business is among the most shopper-friendly.
Top Forestry Companies To Watch In Right Now: RMG Ltd (RMG)
RMG Limited is an Australia-based company engaged in mineral exploration for base metals. The Company�� projects include Kamarga Zinc, Kamarga Copper and Mcleans creek. The Kamarga project is within 50kms of bitumen road, slurry pipeline for concentrates to a port, and high-voltage electricity transmission line. During the fiscal year ended June 30, 2012, with the acquisition of the Kamarga zinc project and Zeehan leadzinc-silver project and management focus on these new acquisitions, the two tenements on the South Australian areas have been relinquished. The Company�� subsidiaries include Resource Mining Group Pty Ltd (formerly Springfield Minerals Pty Ltd), San Saba Pty Ltd, Sunlander Nominees Pty Ltd and Moonraker Minerals Pty Ltd. In April 2013, it announced the completion of acquisition of Symon Communications Holdings Corporation. Advisors' Opinion:- [By Inyoung Hwang]
Royal Mail (RMG) Group Ltd. jumped the most in a month after the U.K. postal service that listed its shares in October said first-half earnings almost doubled. Vivendi SA (VIV) advanced 1.9 percent after saying it will replace its chairman once it spins off its wireless business. Accor SA dropped 3.9 percent after saying it will separate the operation and ownership of hotels into two businesses.
- [By Joao Lima]
Portugal�� 78 billion-euro bailout package from the European Union and International Monetary Fund requires the government to dispose of assets to raise revenue. The U.K. sold a majority stake in British counterpart Royal Mail Plc (RMG) in October at a price that some lawmakers said was too low. Those shares jumped 38 percent in their trading debut.
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