They capitalize software costs in addition to what the do with leases and don't forget stock based compensation. Do yu really believe stock based compensation represents true free cash flow?
If you are open to it simply read some recent articles on Seeking Alpha.
I'm sure what they are doing is perfectly legal but that does not mean it isn't deceptive.
Bull. Just go read several recent articles on seeking alpha and judge for yourself.
Their FCF is very suspect, they pull some of the same stunts Amazon does.
Do your homework. Don't expect me to do it for you.
Look at real FCF, not what is reported by the company. It's been negative of late and not positive.
They aren't taking on an additional $6B in debt simply for new investments.
I would be very careful investing long term money here. Just my 2 cents.
I agree larry except for your assumption that $1M annualized revenue is in 2015.
How do you arrive at that? You're making a big assumption.
Just don't pay attention to any accounting that is fact based and not for the convenience of the company to mislead, i.e. use of aggressive or misleading accounting.
Funny but that sounds an awful lot like the government.
Of course none of that will have anything to do with the stock movement, until it does. I guess for the last year it has as it's down roughly 25%. It must be a bargain now. Insiders buying?????
Yes, this often seems to be the case. A large number and a large run = pig stock.
It doesn't compute.
Check out the latest David Trainer CRM article on Seeking Alpha. For those of us that aren't accountants, it simply tells the truth as the Wall Street money grab continues.
Apparently, what these type of companies are doing is legal but the free cash flow that they claim is no such thing. the good thing for CRM is they have a few people from the current administration on the books apparently according to the comments I've read in a few articles. yup, that makes perfect sense.
No one knows when the time bomb will go off, could be within a few months or years from now but apparently the SEC doesn't care. They didn't care about Madoff either.
I don't know but this was one of the first MOMO sectors down and it sill hasn't recovered.
It's not like they're dirt cheap now I hate to tell you. Sentiment is still bad and as you state they are all at or near lows.
From a contrarian perspective that could be good but for your sake you want to see strong fundamentals going forward.
I still don't fully buy that everything is great in the market with the 2 day snap back. The US is doing OK, not great and the rest of the world, not so hot.
All that and the markets are at or near all time highs on low cap ex spending and heavy buy backs and other financial engineering measures.
Where's the real beef?
i also forgot to mention that market valuations are well above the norm on almost any measure.
So besides the negatives in this sector they will need to buck a long in the tooth market.
The only way I see them doing that is through execution on their forecast and strong guidance.
The estimated time shows as 3/17-3/23 on the corporate events link here. Eventually they will announce the exact date.
I would tend to think you will get some press releases from them before then since that is 3 months away.
The entire sector is still in the tank but one must think there's been lots of tax loss selling and someone else mentioned. That by itself MAY cause some buying coming into the new year IF people don't think this is a risk off market.
But other than all the ifs and buts it's as simple as delivering the goods on revenues this Q and guiding well for 2015.
That would turn this ship around in a hurry IMHO. I know, I know, I keep saying it but I believe it's true.
wilkes71 any idea how rebalancing affects this today?
With Gene Munster coming out in support yesterday, it tells me the game is far from over, unless big players were moving out.
There's certainly truth in that since we know this does not trade on fundies. You get the days where it runs counter the market both ways, i.e. market up this down and vice versa.