Cash flow and paper profits


The Transmile debacle has reminded investors to get back tobasics in placing priority on the quality of earnings growth. Companies are expected to produce free cash flow, not just profits on paper. 

IT was a pleasant surprise that even though Transmile Group Bhd's share price fell 33% on Friday, it did not shake sentiment in the overall market. It was right to treat it as an event specific to that stock only.  

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