Castrese Tipaldi

Am I Crazy to Own Gannett?

They tie up capital this quarter/year, they'll free it next quarter/year. At the end those changes annullate themselves as time goes by. Moreover, those capital requirements almost always are satisfied through lending facilities.
I consider them just noise most of time, and I think it's better to dismiss them when you want to know a company's (other than insurance and banking companies) real operating cash power. At the same time I add back capital cashing (proceeds from PPE sales) to get the real FCF.
Of course, I don't dismiss them completely. The real operating cash power is just one the aspect when you analize completely a company (the most important anyway, as I think); I consider them for other aspects.