In the Cash Flow model managed by Jose Betancourt, the focus is on fundamental analysis and free cash flow with negative net debt. He uses bottom-up analysis and doesn’t restrict his investment choices to any particular industry, country or market capitalization.
The top holding in the model is ChinaCast Education Corp (NASDAQ: CAST), an e-learning service provider for post-secondary education in China. The company’s total cash flow from operating activities fell from $31.3 million in 2008 to $19.8 million in 2009. Unfortunately, CAST’s total liabilities grew, from $69.3 million in 2008 to $119.2 million in 2009 but their stockholder equity rose from $150.6 million in 2008 to $213.9 million in 2009.
The next largest holding in the model is Administaff Inc (NYSE: ASF). ASF is a provider of personnel management services like payroll and benefits administration and records management. The company’s total liabilities fell in 2009 to $353.3 million, down from $408.4 million the previous year. But their total cash flow from operating activities also fell, dropping from $117.8 million in 2008 to $831,000 in 2009. Their stockholder equity increased from $208.5 million in 2008 to $223.2 million in 2009.
The third top holding in the model is Nam Tai Electronics, Inc. (NYSE: NTE), an electronics design and manufacturing company servicing customers globally with items like LCD panels, Bluetooth technology and other electronic components. NTE has seen some positive changes in their total cash flow from operating activities. In 2008, the cash flow had reached $36.8 million but in 2009 it grew to $38.5 million. Their total liabilities fell from $191.8 million in 2008 to $77.5 million in 2009 and the company’s stockholder equity rose from $305.7 million in 2008 to $310.2 million in 2009.
