Some links

Market Folly with notes on all pitches from the “Invest for Kids” conference

You still believe that Operating Cash Flows are a better indicator than earnings ? Well, maybe not at Valeant.

Whole Foods is having a pretty hard time right now, maybe it’s worth having a closer look into ?

Wexboy likes Finish company Saga Furs

A rare glimpse into Baupost Group, especially they way the look at cash (H/T Valueinvestingworld)

Carl Icahn tells his story (8 minute video)

Adjusted EBITDA conquers the world or at least the S&P 500…..

One comment

  • Regarding Valeant:
    I suppose it is less an example of weak informations via Cash Flow but about the weakness of “company boiled non-GAAP” numbers versus the numbers along US-GAAP.
    Already in August 2014 Bronte Capital analyzed the Valeant US-GAAP Cash Flow and came to this conclusion:
    “In other words if you believe the GAAP numbers this company is so dead it is pushing up daisies […]
    If you believe management vis the one-off costs incurred by Valeant then the solvency measure above – average debt to trailing cash flows – is going to improve dramatically over time.
    My plan: to continue updating this post until either (a) the cash flows improve as management guides or (b) the company loses all credibility and maybe dies..”

    One year later we see Valeants loss of credibility, and hence several journalists entering the topic.

    Valeant exemplarily shows the weakness of “adjusted” ratio numbers like Ebdita.

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