StockDiagnostics.com announced that Pre-Paid Legal, Inc has just received its number “1” ranking again for this past quarter based on their operational cash flow per share (NYSE: PPD). This is Pre-Paid’s 34th consecutive quarter at the number one spot.
Stock Diagnostics, founded in 2002, uses proprietary data to analyze the logical relationships between financial statement data and stock price performance. StockDiagnostics ranks company’s Operational cash Flow per share (OPS) a number they say is not as easily manipulated as the earning per share number, and can give a better idea of stock performance, their ability to maintain business operations for the long tern, and whether or not the stock is a good buy.
While the OPS for the first quarter for Pre Paid was slightly lower this quarter compared to first quarter last year, a 9 Cent difference, $1.68 in 2008 compared to $1.77 last year, the OPS for the last 12 months remained promising. In the last year, OPS was $4.96 per share compared to $4.22 in the previous year. Sales of Pre-Paid Legal are trading at $44.02, 12% higher than their one year low from 2007, $39.05.
StockDiagnostics monitors OPS for over 7,000 companies and ranks them mathematically into one of 8 different risk categories. The rankings are based on operational cash flow from the previous quarter as well as from the past year. Each time a company files a quarterly report, the numbers are re-calculated.
While this seems a bit confusing to me, StockDiagnostics claims that the numbers are based on carefully calculated mathematical numbers that analyze almost 2,000 data points of the publicly traded companies. Yet if you look at the companies stock chart, you sort of wonder what the real catalyst is here. The company also claims that the numbers cannot be manipulated as easily as other numbers, like the earnings per share. If nothing else, this is another great tool if you play the market to help make a more educated decision. For those of you more mathematically and stock market inclined, the site provides all the tools and information you will need. Many MLM companies are in and out of business so quickly that this might be a good tool to help examine the long term potential and sustainability of a company based on actual numbers.
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