Saj Karsan co-founded an investment and research firm that is based on the principles of value investing. He has an MBA from the Richard Ivey School of Business, and an engineering degree from McGill University. Visit his blog, Barel Karsan (http://barelkarsan.com/).
While a company may appear undervalued on an earnings basis, this does not mean the company has cash to distribute to shareholders. A quick way to help determine if a company has the cash flows needed to pay shareholders is to compare its depreciation expenses with its capital expenditures within the context of its operating income. For StealthGas (GASS), a provider of carriers and tankers for the oil and gas industry, the comparison is as follows:
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Shipping Your Dollars Away