Viewing posts from September, 2019

How To Calculate Free Cash Flow And 2 Rules To Avoid The Hype Trap

I recently shared "2 Rules To Avoid The Hype Trap" with Ethical Equities Supporters. Following those rules requires that investors can establish revenue growth, free cash flow and profit from the primary documents. It is always important to take these numbers from the accounts themselves, because companies will often highlight misleading adjusted numbers in their presentations, not the statutory numbers.

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Appen (ASX:APX) FY 2019 Results Analysis

Appen Ltd (ASX:APX) FY 2019 Half Year Results Analysis

On Thursday Appen (ASX: APX) reported its results for the first half of FY19 (the company has a December reporting year-end). The stock price moved violently in response, initially soaring 10% within the first hour of trading to almost $30 (within sight of the $32 all-time high set in late July), but from that point plunged 20% to below $24 and ended the day down 11% from its previous close. On Friday the share price rebounded 7% as the market digested the key takeaways, and the APX share price managed to record a 2% gain for the week despite the nausea-inducing rollercoaster ride. In fairness, there was quite a bit to digest, but also readers should remember that over the past couple of months the markets have been particularly jittery amidst the ongoing trade/tariff wars, inversion of the yield curve and other macro concerns.

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