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Investing Strategies / It's Earnings That Count


Subject:  Re: Earning power chart Date:  6/29/2005  6:20 AM
Author:  hheiserman Number:  403 of 1817

The 30 second test does not include taxes. Also, there is no accounting for spending on intangibles, as well as operating leases.

I look at ROE and if it is over 15%, then company probably has enterprising profits. But I always run a firm's financials through my spreadsheet before buying.

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