Fire Your Stock Analyst!

Index 365stock ownership, 279value investing, 276–77Business plan/growth by acquisition, ascompany-specific risk, 23Business Plan Score Scorecard, 110, 120,121, 303Busted Cash Burner analysis, 279Busted Cash Burner test, 305–7Busted cash burners, 279–80as bankruptcy candidates, 130cash burner analysis, 135–36cash flow, 133–34cash flow negative:and working capital negative,138and working capital positive,137–38cash flow positive:and working capital negative,136–37and working capital positive,136–37potential, detecting, 133–39working capital, 134–35comparing current assets to currentliabilities, 135current assets, 134current liabilities, 134Butler, Gregory, 124Buy-side analysts, 46, 47–48CCabot Microelectronics, 113CACI, 148Caliber Learning Network, 138Calico Commerce, 138California Pizza Kitchen, 254Callable bonds, 164Candidate stocks, finding, 4Capital expenditures, 339depreciation vs., 314–15Capital lease obligations, 337Capital leases, 337Capitalized software development costs,201Cardolite, 114Caremark Rx, 127Cash, 200–201Cash and equivalents, 200–201, 336Cash burner analysis, 135–36Cash burners, 205Cash flow, 6, 133–34, 199, 310–11, Seealso Operating cash flow(OCF)quarterly cash flow reports, 205Cash flow analysis, 199–205cash, 200–201dubious allocations, 201free cash flow, 203–5operating cash flow (OCF), using,202–3quarterly cash flow reports, 205working capital changes, 199–200Cash flow negativeand working capital negative, 138and working capital positive, 137–38Calico Commerce, 138DoubleClick, 138Cash flow positiveand working capital negative, 136–37and working capital positive, 136–37Cash flow statement, 225–28, 334, 338–40financing activities, 340investing activities, 339–40net change in cash, 340operating activities, 338–39red flags, 225–28Cash flows, 154Cash from operations, on cash flow statement,339Caterpillar, 149CBS MarketWatch, 260Cendent, 149Channel stuffing, 218–19Chart types, 246–47Checking the buzz, 7Chico’s FAS, 53, 148, 174–76, 203Christopher & Banks, 148, 203Church & Dwight, 193–96Cisco Systems, 52, 70, 100–101, 115,148–49, 171, 173, 201, 259,339–40E=SP formula, 170Citigroup, 101CNBC on MSN Money, xxivCNET.com, 55–56Coca Cola, 149, 171, 174Company and industry overview, 5Company-specific risks, 19–22business plan/growth by acquisition,23faltering growth/creative accounting,24financial health, 23high expectations, 24interest rate risk, 22litigation, 21