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Article: Considering Cash Flow, These Stocks Look Strong.(Brief Article)
- Article from:
- Los Angeles Business Journal
- Article date:
- September 11, 2000
- Author:
CopyrightCOPYRIGHT 2000 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Over the years, I've made a lot of good stock picks in this column. But some stocks I recommended a year ago aren't among them.
At the end of August last year, I chose eight stocks that looked cheap based on the price-to-cash-flow ratio. Of the eight, six have declined. Only one -- Cordant Technologies Inc., which was acquired by Alcoa Inc. for a 39 percent gain -- has beaten the 15 percent return on the Standard & Poor's 500 index since Aug. 31, 1999 (including reinvested dividends). The average result was a loss of 2.6 percent.
Sorry for the clunkers. I am coming back for a second try because I still believe that the price-to-cash-flow ratio is a good ...