- Cash Magic 30 stocks delivered a 59 per cent total return over the past 11 months vs 17 per cent from the FTSE All Share.
- Cash Magic stocks with momentum returned 49 per cent.
- Cumulative total returns since conceiving the Cash Magic screens eight years ago stand at 227 per cent for top 30 and 212 per cent for momentum shares versus 68 per cent from the FTSE All Share.
- A raft of new Cash Magic stocks.
Free cash flow (FCF) has always been a vital number for investors to pay attention to, but it is becoming incrementally even more important. That’s because dubious accounting standards coupled with the corporate world’s increased focus on intangible investments have made earnings numbers ever more questionable. I won’t harp on about reasons why here, but for those interested my “Finding Hidden Value” feature from 25 February provides a fulsome explanation.
Given the genuine accounting problems that exist when reporting earnings, companies have increasingly relied on reporting adjusted earnings numbers. But this creates issues all of its own, most notably that the adjustments companies use all too often paint their profits in an extremely favourable light.