Sorry these graphs have not been more timely. I am now back on track and the picks and graphs will once again be posted at the same time.
Michael Markowski, "The Best picker on Wallstreet" - Smart money http://www.smartmoney.com/onthestreet/index.cfm?story=20031121 had the following to say and I have provided the graphs so you can see what he is talking about.
California Micro Devices Corporation (NASDAQ:CAMD) engages in the design and sale of analog semiconductor products for applications in the mobile handset, personal computing, and digital consumer electronics markets.
CAMD's annualized operational cash flow (CFFO) is at a 5 year high and its shares are trading at or near a three year low. Shares have been oversold by those who are infatuated with EPS, which was negative in most recent quarter while FPS (Free Cash Flow Per Share) was positive and at a 5 year high when compared to its four most recent fourth quarters.
By looking and understanding the graphs below you will see what Michael is talking about. Below you can see the 5 year operational cash flow (OPS) chart.
If you have read our discussions on cash flow investing and understand how to read the graphs you will understand the 5 year chart does not give us a good enough indication of what is taking place within the financial statements and is only the starting point. (To learn about these graphs go to the free tutorial a www.free-cash-flow.com/tutorial.html and you will learn the basics.)
Next we look at the graph below depicting the last 4 quarters.
After looking at the last 4 quarters we need to look at the 20 quarter charts to really understand the business and to look at quarterly trends year over year.
However, the Guru's we all try and follow, including Michael, really only concentrate on the following two graphs. It is these graphs that cause Michael's picks to outperform the market year after year.
As stated earlier we need to look at the 20 quarter chart to get the real picture.
Here you can see what Michael is getting at and why this stock is poised to do well. As I am late with these graphs I will not be doing my usual commentary as I am about to put up this weeks pick. If you have any questions please let me know.
Due to the fundamentals shown here this stocks will hold its' own through this volatile market and will explode when the volatility subsides.
Please take the time to read through the tutorial at www.free-cash-flow.com/tutorial.html it is free and will help you understand why Michael picks the stocks he does every week.
If you would like more information on the system Michael uses please send me an e-mail to [email protected]