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why_meil

07/26/08 1:10 AM

#6070 RE: THEDREAM777 #6067

THEDREAM777, when I said reporting earnings, I just meant reporting their Form 10Q with the SEC. The 10Q is the quarterly filing where you can dig into most recent financial data for a company.

A look at the P&L statement, balance sheet and cash flow statement gives you pretty good insight into the company's overall financial health. But don't forget to read the footnotes as well. And you can look for trends by comparing the most recent filing with the previous filings. Ideally you want to see revenues and net earnings increasing from period to period instead of decreasing.

And you want to look at their cash flow statement to see whether are not they're cash flow positive or negative. Good revenues and earnings are great, but if a company is experiencing cash flow problems it can really put a damper on things. And by looking at the cash flow statement you can see how quickly they're burning through the cash and the source of that cash whether it be from debt or equity financing, sale of an asset, etc.

In this coming 10Q you can also get the current share counts on authorized, outstanding, preferred, restricted, etc., as of June 30, 2008. But remember, by the time this filing posts the data is already 6 weeks old. So stay on top of the other SEC filings as well for updates to this, especially the 8K's.

My opinions. Hopes this helps.