Operating Cash Flow (CF) Critical to Stocks Status for Traders

7/13/2012- Votacall Hosted VoIP & Cloud Based UC Solutions-Many of you have heard the phrase "Cash is King" and there is good reason behind that. Consider you are a Hosted VoIP provider and you have high profit, but your cash flow statement continues to show a decline in value. This shows your investors that you are more focused on the net income number as oppose to how your company is really doing. Every company must keep a detailed cash flow statement, otherwise you will see a decline in the organizations value and will lose investors commitment. An example of this scenario can be seen today by BroadSofts current financial situation. They have scene many people sell the stock because of a decrease in cash the company shows on its CF statement. Investors want to see high profits and an increase in cash (company's assets) because the stock price is directly impacted by both. If a company was investing large amounts of cash in marketing, expansion or research and development then that would be justifiable. However, Broadsoft has not been doing this and therefore has been downgraded from a 'hold' to 'sell' stock. Their net cash flow has decreased $3.45 million or 211.20% when compared to the same quarter last year. These numbers are staggering even though the comapny's stock remains on the high end for the Telecom and VoIP community. In a highly competitive Unified Communication industry, Broadsoft must focus on its cash flow and figure out a way to gain back investors support. They offer a great range of Mobility through their features and have strong partners. Votacall is one such partner, they are a Massachusetts hosted voip provider. Because the Votacall Customer Experience is so great (along with Broadsofts other partners) they have a strong foundation to turn their stock price around. By sticking to their mission and focusing on their cash flow, Broadsoft will rebound and continue to be a leader ($702 million market cap) in the Cloud Communication field.