Welcome

I have created this website as a place to post some thoughts on investing and specific stocks. I hope to create a base of information for the individual investor which will demonstrate solutions to various earnings quality issues.

My first analysis is a note ("Is Hansen Natural Corporation A Value Trap?") arguing that Hansen Natural Corporation (HANS) shares are trading at a level substantially below their intrinsic value. This note is available as a PDF for download or as a web page. It has also been published at SeekingAlpha.com.

I have become very interested these days in the problem of how GAAP accounting conflates operating, financing and investing decisions in the Balance Sheet and Income Statement and how this affects the ability of the financial analyst to gauge the operational performance of a firm. I work through some of these issues in the Hansen note.

The next note therefore will be a detailed examination of free cash flow - specifically examining how free cash flow is really nothing more than the division of a firm's cash flows between those from financing and those from operations & investing. It will be posted soon.

I will also be posting various Excel tools I am developing, free for download. The first worksheet demonstrates an analyst adjustment that rearranges both the balance sheet and income statement so that one can accurately analyze a firm's operational performance by calculating operating assets and operating liabilities separately from financial assets & financial liabilities. Just enter in up to five ticker symbols and it will download all the necessary financial data automatically from free sources on the web.

 

  -- Alexander Deligtisch