The most powerful trade you've NEVER heard of

At last week's MoneyShow in Orlando, I addressed Chevron's (NYSE: CVX) rec... The most powerful trade you've NEVER heard of 310F: These four characters could hold the secret to the most powerful trade you've never heard of. It's released every Tuesday and could DOUBLE your money by Friday. One trader has been quietly using it to generate spectacular, consistent results, making money 99.1% of the time. This shocking video exposes how you too can use this trade to double your money week after week. Cash Flow Is King By Robert Rapier At last week's MoneyShow in Orlando, I addressed Chevron's (NYSE: CVX) recent non-cash impairment, and the impact this had on earnings. What I told the crowd was that what is really important is cash flow. I saw several people nod their heads, and others take notes. So I thought this might be a good opportunity to review cash flow, and why it's a more important metric than earnings. What Is Free Cash Flow? Free cash flow (FCF) measures cash generated by a company in excess of its spending, including capital expenditures. This number is calculated by starting from net income, adding back depreciation and amortization (because those non-cash costs relate to historical expenditures), adjusting for certain non-cash impairments (those impairments are applied against net income but not cash flow) and then subtracting interest paid, changes in working capital and capex. This is a more accurate and comprehensive definition of cash flow than the one used by many, which is simply cash generated from operations minus capital expenditures. But it really boils down to the cash revenues that come in, and the spending that goes out. The reason this is a better metric than earnings is that earnings can be manipulated, and don't really give a good indication of how much cash a company is generating. For example, in the previously-mentioned case of Chevron, the company reported earnings of $2.9 billion in 2019. That was down nearly $12 billion from 2018, and was primarily driven by a large non-cash impairment to Chevron's oil and gas properties. However, Chevron reported 2019 FCF of $13.1 billion versus 2018's result of $16.9 billion. The result was lower due to lower commodity prices, but that's still a lot of positive cash flow that Chevron can use to invest in its business and pay dividends to investors. But if one focused only on earnings, you would get a misleading picture of Chevron's financial position. Who Generates The Most Cash Flow Legally required profits from the biggest no-brainer investment in history It's right there in your living room: The true secret behind the biggest no-brainer investment in the history of capitalism. And thanks to a little known government law called PL 86-779... As long as the company I told you about is profitable...YOU GET PAID. This unusual growth stock is legally required to payout 90% of its profits to shareholders. It sounds nuts. But this company has already delivered profits to everyday Americans... for 14 years straight. And better yet, the next BIG payday could hit investors starting Feb. 12. (That's this Wednesday). Click here now for the full details... Which companies generate the most cash flow? I recently ran a screen to determine the world's largest publicly traded FCF generators. The following table summarizes the results: Unsurprisingly, many of the biggest generators of FCF are companies whose products we use on a daily basis. Apple (NSDQ: AAPL) generated $64 billion of FCF, with Microsoft (NYSE: MSFT) in second place. Royal Dutch Shell (NYSE: RDS.B) was the highest-ranking oil company on the list. Shell was #11 according to this ranking with $19.2 billion of FCF. Chevron's $13.1 billion landed them in the 25th spot. Of course a company's FCF relative to its size is also worth considering. Apple's $64 billion of FCF translates to FCF per share of $14.36 and a FCF yield of 5.0%. In comparison, Amazon's (NSDQ: AMZN) FCF yield was 2.3%, but Shell's was 6.7%. Companies that consistently generate solid FCF are unlikely to go broke. Income investors should look at whether a company is growing its FCF, because that's a good indicator that they can grow dividends over time. The bottom line is that FCF is a crucial financial metric and a good check against a company's earnings reports. If a company is reporting great earnings but negative cash flow, or vice versa, you definitely want to take a closer look at what's really going on. Editor's Note: Our colleague Robert Rapier just provided you with valuable investing insights. But other members of the Investing Daily team can help you make money, too. Consider Jim Pearce, chief investment strategist of our flagship publication, Personal Finance. Jim has a stellar track record at picking profitable investments. These days, he's setting his sights on the so-called Streaming Wars. As consolidation and rapid technological change revolutionize the media industry, many investors are asking: What replaces cable TV? What comes after "cord-cutting"? And more to the point, how can they get rich from it? Those are all good questions and Jim has made it his job to answer them. "The Streaming Wars" are more than just a quadrillion-dollar battle between giant media corporations. They're also an historic opportunity to make money. Want to leverage these trends for market-beating profits? Jim has pinpointed a hidden trade that's poised to reap a windfall. Click here now for details. The Incredible Dividend Map... Where Stocks Yield 67% a Year What's the highest-yielding stock you've ever owned? Did it pay you 8%... 10%... maybe even 12%? Well, the stocks on this map blow that out of the water. Their dividends have risen so fast over the years that they're now yielding us an average of 67%. You need to see this for yourself… You are receiving this email at indra21poetra@gmail.com as part of your subscription to Investing Daily. To ensure delivery directly to your inbox, please add postoffice@investingdaily.com to your address book today. Preferences | About Us | Contact Us | Privacy Policy Copyright February 11, 2020 Investing Daily. All rights reserved. Investing Daily, a division of Capitol Information Group, Inc. 7600A Leesburg Pike West Building, Suite 300 Falls Church, VA 22043-2004 U.S.A.