The Earnings Power Chart will help you find conservative growth stocks for long-term capital gains. Equally important, this two-dimensional framework is often a better leading indicator of poor financial results than the income statement contained in every company’s financial results.

You can learn more about this new, unique and powerful analytical tool by reading my book It's Earnings That Count (McGraw-Hill, 2004). Here you will find step-by-step instructions for building your own Earnings Power Chart.

Who should read It's Earnings That Count?

  • Individual investors
  • Portfolio managers
  • Hedge funds
  • Pension fund executives and other fiduciaries
  • Company presidents, CFOs, and directors
  • Accountants
  • Financial analysts
  • Consultants
  • Commercial bankers
  • anyone else who has a financial stake in how a company performs

Giving you the tools put the odds of success in your favor, It's Earnings That Count covers:

 
  • The 3 risks confronting every growth investor (and how to protect yourself)
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  • The 4 limitations of the income statement found in every annual report, 10-K, and 10-Q (and why they can cost you money)
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  • The fallacy that a firm has "earnings power" just because net income keeps rising
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  • A quick-hitting, five minute test to sift out the obvious losers so you can save time and focus on analyzing potential winners
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  • The Earnings Power Staircase as your hallmark of a great low-risk growth stock
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  • The graphical clues that showed you Lucent Technologies, WorldCom, Enron, and Tyco were in trouble before the problems appeared in the traditional income statement
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  • 2 earnings power ratios to help you find the best stocks on Wall Street and to avoid the investment dreck
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  • 12 ways to know whether management is working for you
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  • A 15-point checklist to make sure the companies you own have a competitive advantage. (Tip: Great growth stocks always have at least one competitive advantages.)
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  • 16 kinds of businesses to avoid
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  • 20 red flags that it may be time for you to sell

    • Check out the article "New Ways to Follow the Money" (pdf) published in August 2004 in Better Investing.

    Important notice for book buyers (download pdf).

    Check out the It's Earnings That Count discussion board at The Motley Fool web site.

     

    		 
      Copyright 2007 by Hewitt Heiserman Jr. All rights reserved.