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 Limoneira (Nasdaq: LMNR ) , whose recent revenue and earnings are plotted below.
Top 5 Small Cap Stocks For 2015: National Australia Bank Ltd (NAB)
National Australia Bank Limited provides products, advice and services. In Australia, it operates through National Australia Bank, MLC and UBank. In the United Kingdom, it operates through Clydesdale Bank. In New Zealand, it operates through Bank of New Zealand. In the United States, it operates through Great Western Bank. Segments include Business Banking, Personal Banking, Wholesale Banking, UK Banking and NZ Banking, MLC and NAB and Great Western Ban. As of April 5, 2012, the Company and its associated entities ceased to be a substantial holder in BlueScope Steel Limited. On May 17, 2012, it ceased to be a substantial holder in Spark Infrastructure Group and Sandfire Resources NL. As of August 24, 2012, the Company and its associated entities ceased to be holder in Tabcorp Holdings Limited. In September 2012, the Company and its associated entities have ceased to be a substantial holder in Incitec Pivot Limited, as of August 30, 2012. Advisors' Opinion:- [By Yoshiaki Nohara]
Alacer Gold Corp. sank 4.1 percent in Sydney as the price of the precious metal declined. Honda Motor Co. (7267) lost 0.6 percent after Japan�� third-largest carmaker reported second-quarter profit that missed analysts��estimates amid slowing motorcycle sales in Southeast Asia. National Australia Bank Ltd. (NAB) retreated 2.3 percent as expenses climbed at the country�� largest lender by assets.
Hot Managed Healthcare Stocks To Buy For 2014: Flextronics International Ltd.(FLEX)
Flextronics International Ltd. provides design and electronics manufacturing services to original equipment manufacturers. The company offers its services to a range of products in the infrastructure, mobile communication devices, computing, consumer digital devices, industrial, semiconductor capital equipment, clean technology, aerospace and defense, white goods, automotive and marine, and medical devices markets. Its services include design and engineering services, such as contract design, joint development manufacturing, and original design and manufacturing services in a range of technical competencies that include system architecture, user interface and industrial design, mechanical engineering, enclosure systems, thermal and tooling design, electronic system design, reliability and failure analysis, and component level development engineering; and systems assembly and manufacturing services, including enclosures, testing, and materials procurement and inventory mana gement services. The company also offers various component product solutions comprising rigid and flexible printed circuit board fabrication, display and touch solutions, optomechatronics, and power supplies; after market supply chain logistics services; and reverse logistics and repair services, such as returns management, exchange programs, complex repair, asset recovery, recycling, and e-waste management services for consumer and midrange products, printers, PDA's, mobile phones, consumer medical devices, notebooks, PC's, set-top boxes, game consoles, and infrastructure products. It has operations in Asia, the Americas, and Europe. Flextronics International Ltd. was founded in 1990 and is headquartered in Singapore.
Advisors' Opinion:- [By Amber Hestla, Michael J. Carr]
Among its suppliers is Flextronics International (Nasdaq: FLEX), which offers a variety of engineering services and provides supply chain management. Other Flextronics customers include Hewlett-Packard (NYSE: HPQ), LG and Google's (Nasdaq: GOOG) Motorola Mobility.
- [By Dan Caplinger]
As a result, the big threat that Jabil constantly faces is the potential loss of its customers. Rival Flextronics (NASDAQ: FLEX ) suffered a huge hit last summer when major customer BlackBerry (NASDAQ: BBRY ) chose to stop using the company to help it make its namesake smartphones, citing cost-cutting efforts in its decision to make changes to its supply chain arrangements. Flextronics has seen substantial revenue declines as a result, even despite BlackBerry's relative weakness in the smartphone space in recent years. More importantly, the move came at the worst possible time, as BlackBerry has subsequently revived in the face of its latest product launch. Jabil counts BlackBerry as a customer as well, so it should be interesting to see how that relationship has developed in the wake of the Z10 and Q10 smartphone releases.
Hot Managed Healthcare Stocks To Buy For 2014: Protective Life Corporation(PL)
Protective Life Corporation and its subsidiaries engage in the production, distribution, and administration of insurance and investment products in the United States. Its Life Marketing segment markets universal life, variable universal life, level premium term insurance, and bank-owned life insurance products primarily through a network of independent insurance agents and brokers, stockbrokers, and independent marketing organizations. The company?s Acquisitions segment focuses on acquiring, converting, and servicing life insurance policies and annuity products sold to individuals, which are acquired from other companies. Its Annuities segment markets variable annuity products that offer the policyholder the opportunity to invest in various investment accounts; and fixed annuity products, such as modified guaranteed annuities, single premium deferred annuities, single premium immediate annuities, and equity indexed annuities primarily through broker-dealers, financial ins titutions, and independent agents and brokers. The company?s Stable Value Products segment offers guaranteed funding agreements to special purpose entities; fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, institutional investors, bank trust departments, and money market funds; and guaranteed investment contracts to qualified retirement savings plans. Its Asset Protection segment primarily markets extended service contracts, and credit life and disability insurance to protect consumers? investments in automobiles, watercraft, and recreational vehicles; and markets a guaranteed asset protection product primarily through a national network of approximately 3,750 automobile, marine, and recreational vehicle dealers. The company was founded in 1907 and is headquartered in Birmingham, Alabama.
Advisors' Opinion:- [By Andrew Bary]
Life insurance stocks have gotten a boost from Dai-ichi Life�� deal to purchase Protective Life (PL) for $70 a share, or $5.7 billion. Protective Life is up 18%, to $69.30 at 11:55 a.m., trading just below the deal value.� While the deal has been rumored for a few days, the actual price is about 16% higher than the $4.9 billion price that had been discussed in the media.
- [By David Sterman]
My favorite insurers: AIG (NYSE: AIG) (which I discussed a few months ago), Protective Life (NYSE: PL) and Reinsurance Group of America (NYSE: RGA).
- [By David Goodloe]
The CEO and president of Protective Life Corp (PL), John D. Johns, sold more than 200,000 shares of company stock on August 14 for nearly $14 million. The shares sold for $69.24, and the total transaction amount was $13,944,797.
- [By Maria Armental var popups = dojo.query(".socialByline .popC"); popups.forEach]
Among the companies with shares expected to actively trade in Wednesday’s session are Protective Life Corp.(PL), Tibco Software Inc.(TIBX) and Yingli Green Energy Holding Co.(YGE)
Hot Managed Healthcare Stocks To Buy For 2014: Spectra Energy Partners LP(SEP)
Spectra Energy Partners, LP operates as an investment arm of Spectra Energy Corp. Spectra Energy Partners, LP, through its subsidiaries, engages in the transportation of natural gas through interstate pipeline systems, and the storage of natural gas in underground facilities in the United States. As of December 31, 2007, it owned and operated 100% of the approximately 1,400-mile East Tennessee interstate natural gas transportation system that extends from central Tennessee eastward into southwest Virginia and northern North Carolina, and southward into northern Georgia; and a liquefied natural gas storage facility in Kingsport, Tennessee with working gas storage capacity of approximately 1.1 billion cubic feet (Bcf) and re-gasification capability of 150 million cubic feet per day. The company also owned a 24.5% interest in the approximate 700-mile Gulfstream interstate natural gas transportation system, which extends from Pascagoula, Mississippi, and Mobile, Alabama across the Gulf of Mexico and into Florida; a 50% interest in Market Hub, which owns and operates 2 salt cavern natural gas storage facilities, the Egan storage facility with gas capacity of approximately 20 Bcf, and the Moss Bluff storage facility with working gas capacity of 15 Bcf. The company transports and stores natural gas for local gas distribution companies, municipal utilities, interstate and intrastate pipelines, direct industrial users, electric power generators, marketers, and producers. Spectra Energy Partners (DE) GP, LP, operates as the general partner to Spectra Energy Partners, LP. The company is based in Houston, Texas.
Advisors' Opinion:- [By Seth Jayson]
Spectra Energy Partners (NYSE: SEP ) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Spectra Energy Partners met expectations on revenues and beat expectations on earnings per share. - [By Rich Duprey]
Natural gas transportation and storage master limited partnership�Spectra Energy Partners� (NYSE: SEP ) �announced its 22d consecutive increase in its quarterly dividend payment. Spectra�will pay a�quarterly cash distribution�of $0.50125 on May 15 to the holders of record at the close of business on May 9. That's an increase of five-eighths cent over the previous level of�$0.495�per unit.
Hot Managed Healthcare Stocks To Buy For 2014: Triumph Group Inc.(TGI)
Triumph Group, Inc., through its subsidiaries, engages in the design, engineering, manufacture, repair, overhaul, and distribution of aircraft components. The company operates in two segments, Aerospace Systems and Aftermarket Services. The Aerospace Systems segment provides mechanical and electromechanical controls, such as hydraulic systems and components, main engine gearbox assemblies, and accumulators and mechanical control cables. It also involves in stretch forming, die forming, milling, bonding, machining, welding, and assembling and fabricating various structural components used in aircraft wings, fuselages, and other assemblies. In addition, this segment provides composite assemblies for floor panels, environmental control system ducts, non-structural cockpit components, and thermal acoustic insulation systems. The Aftermarket Services segment provides maintenance, repair, and overhaul services for commercial and military markets. This segment offers its services on auxiliary power units, and air frame and engine accessories, including constant-speed drives, cabin compressors, starters and generators, and pneumatic drive units; and on thrust reversers, nacelle components, and flight control surfaces, as well as supplies spare parts of cockpit instruments and gauges for a range of commercial airlines. The company serves the aerospace industry, including original equipment manufacturers of commercial, regional, business, and military aircraft and components, as well as commercial airlines, air cargo carriers, and military customers. Triumph Group, Inc. was founded in 1993 and is based in Wayne, Pennsylvania.
Advisors' Opinion:- [By Eric Volkman]
Triumph Group (NYSE: TGI) now holds a new asset following a deal inked with Precision Castparts (NYSE: PCP). Triumph has acquired Primus Composites from its counterpart. The terms of the deal were not disclosed.
- [By Ben Levisohn]
Shares of Textron have gained 1.2% to $36.63 at 1:09 p.m., while Embraer (ERJ) has risen 0.5% to $32.30, Triumph Group (TGI) has advanced 0.2% to $75.73 and Spirit AeroSystems (SPR) is off 0.8% at $33.90.
- [By Rich Smith]
On Friday, Triumph Group's (NYSE: TGI ) Aerostructures-Vought Aircraft Division announced that it has been awarded the contract to design and build the center fuselage section III, rear fuselage section, and also the rudder and elevator components on the tail section on Embraer's second-generation family of E-Jets.
Hot Managed Healthcare Stocks To Buy For 2014: Biota Pharmaceuticals Inc (BOTA)
Biota Pharmaceuticals, Inc., formerly Nabi Biopharmaceuticals, incorporated on March 14, 1969, is an anti-infective drug development company, with key expertise in respiratory diseases, particularly influenza. Biota developed the neuraminidase inhibitor, zanamivir, subsequently marketed by GlaxoSmithKline as Relenza. The Company�� researches include a series of candidate drugs aimed at treatment of respiratory syncytial virus (RSV) disease and Hepatitis C (HCV) virus infections. In addition, Biota and Daiichi Sankyo co-own a range of second generation influenza anti-virals, of which the lead product lnavir, is approved for marketing in Japan.
The Company�� products include Zanamivir, Inavi, Phoslyra, BioStar OIA FLU and BioStar OIA FLU A/B. Zanamivir is a neuraminidase inhibitor for the treatment and prophylaxis of influenza marketed as Relenza by GlaxoSmithKline. Inavi (laninamivir) is a neuraminidase inhibitor marketed by Daiichi Sankyo in Japan. Phoslyra is a phosphate binder indicated to reduce serum phosphorus in patients with end stage renal disease (ESRD). BioStar OIA FLU and BioStar OIA FLU A/B are influenza diagnostic tests, which are marketed by Inverness Medical as part of their BioStar product range.
Relenza is delivered directly to the primary site of infection on the lungs, using a Disk Inhaler device. Relenza is approved in over 50 countries for the treatment of influenza, including in the United States, the European Union, Japan and Australia. Relenza is also approved for use as a preventative (prophylactic) treatment against influenza. Inavir is approved for sale in Japan for the treatment of influenza in adults and children. Daiichi Sankyo has applied to sell Inavir in Japan for the prevention of influenza.
PhosLo and Phoslyra are different dose forms of calcium acetate; a phosphate binder approved in multiple countries for the control of hyperphosphatemia (high serum phosphate) in patients with end stage renal disease (ESRD). PhosLo and Pho! slyra were sold to Fresnius Medical Care. Biota, together with its Japanese based partner, Daiichi Sankyo, have developed an inhaled antiviral compounds for influenza, called long acting inhaled neuraminidase inhibitors (LANI). Biota's human rhinovirus (HRV) drug for the prevention and treatment of the causes of the common cold, BTA798, has completed Phase I, Phase IIa and Phase IIb clinical trials.
Advisors' Opinion:- [By gurujx]
Biota Pharmaceuticals Inc (BOTA) Reached the 3-year Low of $2.42
The prices of Biota Pharmaceuticals Inc (BOTA) shares have declined to close to the 3-year low of $2.42, which is 93.3% off the 3-year high of $34.92.
Hot Managed Healthcare Stocks To Buy For 2014: Calumet Specialty Products Partners L.P.(CLMT)
Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America. It operates in two segments, Specialty Products and Fuel Products. The Specialty Products segment processes crude oil and other feedstocks into various customized lubricating oils, white mineral oils, solvents, petrolatums, gelled hydrocarbons, cable fillers, natural petroleum sulfonates, waxes, and compressor lubricants. Its products are used in applications in a range of industries, such as industrial goods, including metal working fluids, belts, hoses, sealing systems, batteries, hot melt adhesives, pressure sensitive tapes, electrical transformers, refrigeration compressors, and drilling fluids; consumer goods, including candles, petroleum jelly, creams, tonics, lotions, coating on paper cups, chewing gum base, automotive aftermarket car-care products, lamp oils, charcoal lighter fluids, camping fuel, and various aerosol products; and automotive goods, such as motor oils, greases, transmission fluid, and tires. The Fuel Products segment processes crude oil into various fuel and fuel-related products, such as gasoline, diesel, jet fuel, and heavy fuel oils. This segment also offers fuel-related products, including fluid catalytic cracking feedstock, asphalt vacuum residuals, and mixed butanes. Calumet GP, LLC serves as the general partner for Calumet Specialty Products Partners, L.P. The company was founded in 1916 and is headquartered in Indianapolis, Indiana.
Advisors' Opinion:- [By Ben Levisohn]
The price of crude oil in the U.S. has dropped nearly 9% during the past month of trading, and Credit Suisse believes it’s time to take another look at the refiners, including Tesoro (TSO) and� Calumet Specialty Products (CLMT).
- [By Robert Rapier]
As its name suggests, Calumet Specialty Products Partners (Nasdaq: CLMT) isn’t a conventional refiner. It’s a refiner of petroleum-based specialty products and fuels, with 11 domestic production facilities spread across Louisiana, Texas, Montana, Wisconsin and Pennsylvania. In addition to gasoline, diesel, jet fuel and asphalt, the partnership produces solvents, mineral oils, waxes and specialty lubricants.
- [By Robert Rapier]
Calumet Specialty Products Partners (Nasdaq: CLMT) also reported a net loss for the quarter of $34.8 million, or ($0.54) per diluted unit, compared with net income of $42.4 million, or $0.69 per diluted unit, for the same quarter in 2012. Units traded down nearly 13 percent for the week.
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