Q: In concurring with Clarence's comments and observations around CXR.
This includes that management must have integrity and be honest I have learned.
To that point many CEO's, and high level management got to the position they are in due to their sales skills to the board of directors, the public and shareholders and thus meeting, talking with them and listening to them can often only make an investor vulnerable to their sales pitch of saying all is well, do not worry. I have learned that many big investors never talk to the management for this very reason. They do not want to get sucked in so they remove that possibility.
Reading the annual and 1/4'trly reports including the address and final notes can usually reveal the truth as the reports are reviewed by the company's lawyers and they do not want a law suit once they are published.
I understand that earnings and other #'s can me manipulated but over time this can be detected by looking at the other #'s. FCF, Free Cashflow cannot be manipulated as a company either has cash or it does not. They can lie about is but that would not serve them very long or well. Growing FCF year over year over year is one good thing to look for for sound well managed companies.
Also how the CEO is compensated which was over-looked by many in the case of VRX. Are they in for themselves or the long-term business and shareholders?
This includes that management must have integrity and be honest I have learned.
To that point many CEO's, and high level management got to the position they are in due to their sales skills to the board of directors, the public and shareholders and thus meeting, talking with them and listening to them can often only make an investor vulnerable to their sales pitch of saying all is well, do not worry. I have learned that many big investors never talk to the management for this very reason. They do not want to get sucked in so they remove that possibility.
Reading the annual and 1/4'trly reports including the address and final notes can usually reveal the truth as the reports are reviewed by the company's lawyers and they do not want a law suit once they are published.
I understand that earnings and other #'s can me manipulated but over time this can be detected by looking at the other #'s. FCF, Free Cashflow cannot be manipulated as a company either has cash or it does not. They can lie about is but that would not serve them very long or well. Growing FCF year over year over year is one good thing to look for for sound well managed companies.
Also how the CEO is compensated which was over-looked by many in the case of VRX. Are they in for themselves or the long-term business and shareholders?
