Status Updates From Bulls, Bears & A Croupier: ...

October 1987:the market fell 25% in one day and a total of 49% in about 4 months! (p.272)

Once you have established that the earnings are real and supported by cash then PE (ratio) can be a useful way of measuring how keenly priced a stock is (p.121)

It is desirable for a company to have a positive working capital where cash generated from operations is higher than the profit reported.

A way for investors to check that a company is not capitilasing too many costs is to match the capex number against its overall depreciation expense, which can usually be in the Profit and Loss Statement. If the capex is significantly higher than the depreciation expense over two/three years then you should query what is going on.

A way for investors to check that a company is not capitilasing too many costs is to match the capex number against its overall depreciation expense, which can usually be in the Profit and Loss Statement. If the capex is significantly higher than the depreciation expense over two/three years then you should query what is going on.

If you want to boost your profit, the easiest way to do that is to convince your auditors to allow you to put as many costs as possible into capex (payment for property, plant and equipment under Cash flows from investing activities in the Statement of Cash Flows which is the most important statement of the threes) instead of