This post should read: What Bob Paretta SHOULDa told me about Wachovia in time for me to sell it all on April 3, 07(price = 54.47), instead of when I did, Sep 22, 08 (price = 17.60).
Bob, (Prof of Accting at U Del) sent me the nice analysis at left to illustrate why I'm a dunce when it comes to the stock market. It's all about the cash flows, says he, and I believes him now. But not before I loses a pretty penny, says I. Bob also shared the two rules of Financial Analysis 101 that anyone who invests in the stock market should follow: Rule 1: Focus on the statement of cash flows. Rule 2: Pay attention to Rule 1. That's what you learns when u takes Bob's course in Accting 800.
Back when Bob and I taught at SUNY Binghamton, he was known among the faculty as "a river to his people." We were jealous but never knew why the students loved him so. Now I know.
Bottom line: Hold your friends close; hold your accountant friends closer!
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