Which four companies fail Roger Montgomery’s cash flow test?
On 2 June 2011, Roger Montgomery revealed his quick-back-of-the-envelope Value.able method investors can follow to calculate cash flow. In this appearance on Switzer TV with Peter Switzer, Roger reveals four businesses that don’t make his A1 grade, including Naomi cotton, Funtastic, Lend Lease and Nexus Energy. Businesses with poor cash flow generally generate low profits and have high debt. Investor’s would be better to avoid such businesses. Watch the interview.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
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