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SA Editor Eric Jhonsa  

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  • AMSC obtains $6M worth of Asia-Pac grid product orders [View news story]
    Ah - it looks like AMSC does its FY reporting differently from most tech companies. Edited the post.
    Aug 26, 2015. 04:55 PM | Likes Like |Link to Comment
  • AMSC obtains $6M worth of Asia-Pac grid product orders [View news story]
    The delivery date is right. FY16 ends in March 2016. I fixed the link.
    Aug 26, 2015. 03:31 PM | Likes Like |Link to Comment
  • Salesforce overhauls core CRM software, launches financial services product [View news story]
    "If they're getting burned in their short positions it's due to market timing more than anything."

    If that's the case, their bad "market timing" has lasted several years.

    I don't have a position in CRM. But judging by the comment threads I've seen for the stock and various peers, I get the impression that a lot of shorts don't understand how cash flow gets understated relative to earnings due to revenue recognition rules for cloud subscriptions. IMO, that's a dangerous oversight.
    Aug 26, 2015. 03:20 PM | Likes Like |Link to Comment
  • Google up over 4% as Goldman upgrades, markets rally [View news story]
    I hear you. We don't have a specific policy about reporting non-GAAP instead of GAAP, or vice versa, when it comes to reporting earnings. We use whatever consensus estimates are based on, so as to give an idea of how a company performed relative to expectations.

    For AAPL, AMZN, and a few other tech companies, that has meant reporting GAAP EPS. For GOOG and most others, it has meant reporting non-GAAP.
    Aug 26, 2015. 01:05 PM | Likes Like |Link to Comment
  • Google up over 4% as Goldman upgrades, markets rally [View news story]
    Point I was making is that GAAP and non-GAAP can each be misleading at times. Best to look at both.
    Aug 26, 2015. 12:24 PM | Likes Like |Link to Comment
  • Google up over 4% as Goldman upgrades, markets rally [View news story]
    It's probably worth mentioning at times. The issue is that the overwhelming majority of companies are reporting in non-GAAP. Just a few exceptions, such as AAPL and AMZN.

    I think GAAP and non-GAAP can each be misleading in their own ways. Non-GAAP by ignoring stock comp and potentially other meaningful expenses. GAAP by often featuring huge one-time and non-cash charges.

    For example, MSFT had FQ4 GAAP EPS of -$0.40 due to the Nokia write-down. Not reflective of how the business was actually performing.
    Aug 26, 2015. 11:46 AM | 1 Like Like |Link to Comment
  • Google up over 4% as Goldman upgrades, markets rally [View news story]
    Google's consensus estimates are based on non-GAAP.
    Aug 26, 2015. 11:14 AM | Likes Like |Link to Comment
  • Salesforce overhauls core CRM software, launches financial services product [View news story]
    See the above comment. Stock dilution affects future FCF/share. And Salesforce is richly valued even on an FCF/share basis. But that's not the same as making the company unprofitable.

    A lot of the mistakes made in valuing companies like CRM, WDAY, NOW, PANW, etc. come from the fact that it's a lot easier/more convenient for a retail investor to value a company based on P/E than to do a full-blown DCF model in Excel. But taking the convenient route can be pretty costly to one's portfolio.
    Aug 26, 2015. 09:09 AM | Likes Like |Link to Comment
  • Salesforce overhauls core CRM software, launches financial services product [View news story]
    Of course stock dilution matters. It lowers the amount of future free cash flow per share each shareholder is entitled to, which in turn affects the valuation. But it doesn't make the company unprofitable on an FCF/share basis.

    A lot of people have been burned shorting cloud software stocks over the last few years by obsessing over GAAP EPS and ignoring/failing to understand FCF. Like they say, you can lead a horse to water, but...
    Aug 26, 2015. 09:00 AM | Likes Like |Link to Comment
  • Salesforce overhauls core CRM software, launches financial services product [View news story]
    "Real" profitability is when a business takes in more money than it spends (i.e. positive free cash flow). Those who focus only on EPS (whether GAAP or non-GAAP) unfortunately don't get that.
    Aug 25, 2015. 11:30 PM | Likes Like |Link to Comment
  • Salesforce overhauls core CRM software, launches financial services product [View news story]
    On a free cash flow basis (i.e. the difference between how much money actually goes out of the company and how much goes in), they've been profitable for a while.
    Aug 25, 2015. 09:19 PM | Likes Like |Link to Comment
  • Annaly's chairman buys 100K shares [View news story]
    Edited the post to note Wellington is a woman.
    Aug 24, 2015. 06:46 PM | 4 Likes Like |Link to Comment
  • Himax reports seeing TDDI design wins, aims to challenge Synaptics [View news story]
    Nothing personal, but I've covered many, many similar announcements. Far more than your linguistics specialist, I suspect. When a company says they plan to launch/ship/sell something "by" a particular quarter, it just about always means they expect shipments, sales, etc. to start in that quarter.
    Aug 18, 2015. 04:43 PM | 4 Likes Like |Link to Comment
  • Himax reports seeing TDDI design wins, aims to challenge Synaptics [View news story]
    When a company says a product will begin shipping "by" a particular quarter, they generally mean it will begin shipping in that quarter, not before it.
    Aug 18, 2015. 03:51 PM | 1 Like Like |Link to Comment
  • SouFun down 2.9% post-earnings; IDG/Carlyle/management investing up to $1B [View news story]
    The post has been corrected. Thanks for letting us know.
    Aug 8, 2015. 03:58 PM | Likes Like |Link to Comment
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