9:52am - I go excited last night realisig that we're so close to Christmas, but I still have yet to hear any of those god damn awful X-mas tunes while grocery shopping. Maybe they finally did a survey and listened to it.
Trading Tip - The 4c quartly financials seems like a scary document at first, but it really isn't. Here's the basics of what you need to know: Igore everything that written above the 4c quarterly document itself. The company highlights are usually propoganda pieces. ignore it.
- Cash flows, section 1: ----- 1.1 Receipts from customers is another word for Revenue. ------1.2 Payments; Do the numbers make sense? Your biomed stock should be putting $$ into R&D. Your mining company should be putting $$ into operating costs etc. Staff costs are a BIG one for micro caps. Got a $5m company but the staff costs are $1.2m per quarter? That should ring some serious alarm bells. The numbers should all come up as relatively "common sense". You should be able to spot major red flags here quite easily. ------1.9 if everything makes sense, net cash used in operating activities is the number you want to pay attention to
- Increase/Decrease in cash and cash equivalents, section 4: ------ 4.1 to 4.5 are all very self explanatory, and worth understanding. They're a summary of where the money flows. ------ 4.6 CASH AND CASH EQUIVALENT AT END OF QUARTER - This is a key piece of info to understand if cap raise is coming
- Estimated cash flows for next quarter - section 9 ------ 9.8 TOTAL ESTIMATED CASH OUTFLOWS - Important to understand how much they plan on spending
This is a quick rundown but you must understand: Section 1: How much revenue is flowing. Section 4: How much cash do they have. Section 9: How much do they plan on spending.
If a coy has $2m cash, and they spend $1.2m per quarter, guess what's around the corner? Yep - A cap raise.
There is more nuanced things to spot in the report, of course. This is just a quick beginners guide to what you IMO you must know about the 4c documentation of any company.
Trading Apparel -
Sorr, formatting today was pretty garbage, I kind of rushed it.
