Operating Cash Flow

Matt McCall writes:

Cash is the life’s blood of any company. It comes from either the company’s operations or from raising capital. There are a number of definitions of cash flow. I prefer to focus on what the core operating business is generating or burning net of any financing activity. As a result, I look at Operating Cash Flow minus Cap-X. A gross generalization of this includes (apologies to all of my accounting & finance profs):

Net Income: plus depreciation, amortization and other non-cash cash income statement items, minus working capital needs, minus core, recurring capital expenditures (exclude large one time charges)

Since both working capital and cap-x can vary significantly monthly, you should average across a period of time that smooths out the swings such as the average monthly cash flow for a 3 or 6 month period. You should also understand how this changes as your business ramps since it will impact your financing needs.

Presenting Better

Pamela Slim gives some tips:

# As soon as you get to your location, set up and test your equipment. Schmoozing, coffee and furniture re-arranging can wait.
# Check and double check to make sure you bring the right presentation, and right version of the presentation, to the live event. Am I the only one that does last-minute changes to a presentation and mistakenly saves it to the wrong place on my hard drive?
# Fully charge your laptop battery, and bring a backup if necessary, even if you are planning to use a power cord.

Global Bull Market

WSJ writes:

Just seven years after the great bull market of the 1990s thudded to a halt, a small group of seasoned investors — including some with no vested interest in selling stock — believe the U.S. market is in the midst of another long period of gains.

This group of extreme optimists believes that global economic strength will keep shares rising for much longer than has been common in previous eras. Not only China and India, but also Japan, Western Europe, Latin America and other parts of Asia are feeding on one another.