Ed Bowsher explains what a ‘profit warning’ is, and how you should react if a company you own warns that profits will disappoint investors.
There are many different ways to measure a company’s profits, but for Ed Bowsher, one method stands out in particular. In this video, he explains how it works, and why for investors, it is better than the others.
Ed Bowsher explains the distinction between profit and cash flow. Once you understand it, you’ll be on the way to becoming a successful stock picker.
Investors can easily be bamboozled by accounting jargon such as depreciation and amortisation. Here Tim Bennett explains what these words mean and how to deal with them.
Valuing a company is more art than science. Tim Bennett explains why and introduces three ways potential predators and investors alike can get started.
Biotech and pharmaceutical investors, among others, need to watch out for the way firms treat the cost of developing new products, as this can have a big impact on a firm’s results. In his fifth video in the ‘cooking the books’ series, Tim Bennett explains how.
Pick up two sets of accounts for similar firms and you may find radically different numbers. Tim Bennett explains why this happens, and what you can do about it.
In the third of his ‘cooking the books’ series of videos, Tim Bennett explains how investors can be fooled by the treatment of long-term assets, and offers a couple of solutions.
Tim Bennett takes a look at how companies can manipulate what accountants call ‘provisions’ to create the profit profile they want investors to see. He also explains how you can avoid being fooled.
Most investors know that company directors can boost profits with crafty accounting. But can they do that with cash flow? Tim Bennett looks at five ways a firm could dupe you into thinking its cash flows are stronger than they really are.