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Great post mortem! The crux of the less:




"Investors who are looking at Wall Street analyst earnings per share growth should always determine whether that growth is going to be funded through internally generated excess cash from operations (see this week's Home Depot Duel) or simply through a string of equity offerings. Avoid the latter."

As one goes through annual and quarterly reports, how do I recognize that growth is funded by equity sales rather than cash from operations. In particular, I have in mind the case of Rubio's Baja Grill & Restaurant whose stock has been going nowhere for now, but revenues are growing sharply. Are these truly revenues or are they cash from additional equity offerings?

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