tag:blogger.com,1999:blog-1374889173783760149.post1065004927839915203..comments2023-03-20T06:00:54.212-07:00Comments on Cedarvue: "Buying In" to the NumbersCedarvuehttp://www.blogger.com/profile/01453445550676719765noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1374889173783760149.post-23228191167697358762010-03-11T07:10:38.024-08:002010-03-11T07:10:38.024-08:00I agree the numbers are key, and the most importan...I agree the numbers are key, and the most important element of the company's valuation, but the income statement and cash flow analysis are a record of past performance. How well the strategy hangs together and the calibre of management andtheir ability to execute the strategy are better indicators of future performance: how big is the immediate market, who and how strong are the competitors, what are the trends and discontinuities that affect market size and growth opportunities/challenges and the key success factors; have the company leaders delivered on their prior commitments, are they up to the future challenges, etc.<br /><br />So in addition to a "quality of earnings" report from an audit firm, there should be a "strategy report" to evaluate future prospects for profitable growth and value creation.Jeff Chanhttp://www.secorgroup.comnoreply@blogger.com