Cash Flows Are The Music of Finance

When Forward View analyzes any company or stock, we always look for the cash flow. "Show me the money" is an appropriate slogan for our research methodology. We believe that a focus on cash flow is both theoretically valid and eminently practical. Over the long-run, a business thrives or fails due to its increases or decreases in cash. The Forward View valuation model utilizes a DCF (discounted cash flow) approach in order to strip out "earnings" based on creative accounting. That's why we never recommend investing in firms without positive cash flows or a clear path to free cash flow (defined as operating cash flow minus capital expenditures).

Too often, equity research analysts forget that the only thing a company can spend is cash. Period. They can't spend "income" from the favorable revaluation of assets nor from adjustments in intangibles. Unfortunately, some analysts base ratings on these very items. Forward View will never get distracted by these things. Our goal is to accurately forecast future cash flows and then value them accordingly. We would be happy to explain the technicalities of our analytical methodology if you would appreciate more information. Forward View always welcomes your inquiries.

Nathan Yates

Forward View Consulting, 288 Crack Rock Road, Clintwood, VA 24228, USA

Nathan Yates has been fascinated by technology and finance since he was young. He was the kid devouring the business section of the newspaper (remember those?) while others read everything else. Nathan believes that the American economy is built from the bottom-up, meaning that small businesses and local nonprofits are the foundation of our nation's success. These organizations are the lifeblood of towns and cities across the U.S. Unfortunately, most consulting firms overlook companies or organizations that don't have eight-figure budgets. Nathan thought Forward View Consulting should be different. And we are. As Lead Consultant, Nathan works with each client to deliver only the best financial and/or website development services. Nathan's years of web design experience and his business degrees ensure that professional expertise is brought to each project. Our network of contacts can offer additional specialized guidance if needed. Before creating Forward View Consulting, Nathan worked for an independent equity research firm as a Research Associate covering the industrial and energy sectors. This work involved preparing quarterly 15-40 page reports on multi-billion dollar corporations along with timely analysis of M&A activity and industry-wide news. He also managed research distribution and the company's online presence. Nathan also spent a summer serving as a local financial adviser's Research Intern. Nathan earned a Bachelor's degree in Economics and Finance from Southern New Hampshire University, graduating summa cum laude. He then earned a Master's degree in Finance from Southern New Hampshire University, where he was named the Outstanding Student in his particular concentration. Now, Nathan is an adjunct professor teaching economics and finance for his alma mater. In his spare time, Nathan enjoys fishing, reading, time with family and serving as a volunteer webmaster for the Clintwood United Methodist Church.