Although I agree with you, but still I would like to stay with companies which show intent to use cash productively in the best interests of shareholders. sure, you may invest in productive assets and the requirement may make free cash flow negative, but the infusion must be only and only for increased profits in the coming years. Basant Sir, there is a big difference between loss making and negative cash flows. Its quite truse that during initial years you need capital and one has to invest in fixed assets but there must be a clear cut strategy when you intend to become cash flow positive. Ultimately we would like the companies to earn for us. I am quite happy with a company which is into a product which has a small market so long as the company manges its position in the markets with adequate profits. We all have made money through different means. Free cash flow gives the company the legroom to become aggressive in its portfolio. The reason why I like Pidilite so much is the way they manage growth. They hardly come up with a disappointing quarter and that is because they have been very very aggressive in acquiring productive assets and using gearing very suitably and increasing it to only increase the RoE. Now, the reason they have been able to do so is because they almost turned debt free a year back and when the opportunity came for becoming very aggressive their balance sheet was strong and clean enough to give them the opportunity to borrow and have a launching pad. Thats why I like Glaxo Consumer ....on an equity of 42 crores they will make a free cash flow of 200 crores. They are already debt free, have adequate investments on hand, have very little working capital needs and hence the only way out for cash utilisation will be increased pay-outs. Now at least I m clear that this company is a steady grower and alhough you cant spot a multibagger with cash flows but you will never lose 50 p.c. in a matter of days/weeks/months with such stocks. I play a very long cycle and hence multibaggers generally tend to make me feel edgy. So, I dont try to spot multibaggers but look at very decent long term plays and even with this approach I have been quite reasonably successful and now I feel making a career in stocks on one's feet is not very difficult provided one has the discipline.

Please see this article:
http://www.articlesphere.com/Article/Investing--Analyzing-EPS/58875

High quality EPS refers to earnings that are a relatively true representation of what a company actually earns. Increasingly, cash EPS is being used to evaluate earnings. Also known as operating cash flow per share, it gives us the net effect of the inflow and outflow of money in a company's day to day operation. A cash flow statement breaks down cash flow into operation, investing and financing. A good company will normally display a growing trend of higher cash EPS against EPS.

Is it mostly correct article? If yes, then why more sites don't give cash EPS instead of EPS?

BasantJi and experts,