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Right now, it’s earnings season. Quarter 3 is over, and now it’s time to see how different companies have done. So far, things are looking optimistic. The stock market is rallying so far this morning, with optimism for earnings driving the bulls. However, earnings aren’t the only think you should look at when you are considering a company. One of the things you should consider is a company’s cash flow.

Cash flow is something to consider because it offers a look at what the bottom line is like, and it provides insight into the health of a company. How much capital the company has at its disposal, as well as whether or not it is moving freely through the system, is an important consideration. Good cash flow indicates that money can be pumped into the business for further growth, and is a sign of good fiscal management by the companies directors.

Solid cash flow is also beneficial since it indicates that there is more money available for shareholders through programs like dividends and revenue sharing. This can be beneficial in terms of providing shareholders with additional income, apart from the money you receive when you sell your shares, dividends represent “free” money. This can be a great time to look into companies with healthy cash flow and good dividend programs.

Cash flow can also help you when deciding what to do about growth investments. Small caps offer an intriguing possibility right now, and if you are interested in making a few new investments in bargain stocks, you might be able to benefit from small caps. Checking a company’s cash flow can help you determine whether or not it is a good idea to invest in a particular company, and give you a sense of the fundamentals.

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After an insipid start to the week, the U.S. stock market is heading higher. Sure, stocks have gained every day this week so far. But not by much, and always after a shaky start. Today, though, it appears as though U.S. stocks are poised to rally in earnest, as the Dow approaches a 100-point gain. One of the main reasons for the interest in equities is the idea that risk appetite is returning and that the cash that has been sitting and waiting out the sidelines will go into stocks. MarketWatch reports on the idea of cash moving into the stock market:

“As you look at the cash-on-the-sidelines argument, it hypothetically represents pent-up demand for equities,” said Art Hogan, chief market strategist at Jefferies & Co. …

“There is always going to be some level of cash on the sidelines, but as the market gets better it comes down as investors take on more risk, whether it’s in stocks or bonds,” said Hogan, a scenario that helps explain the recent trend of stock and Treasury prices both moving higher when they more typically move in opposite directions. …

“Until we see a reason to sell off there is enough money sitting on the sideline asking every day, where’s the top, am I missing this? Equity markets are seeing this money flow back in to some extent,” said Bruce Shalett, managing partner of Wynston Hill.

If you are interested in investing in the stock market, now is a good time to get in. You can buy more shares for your money, and earn more as the recovery really begins in earnest. Of course, you do need to be careful, and make sure that you are keeping with the general outline of your investing plan. But the fact remains that there are some very real opportunities right now.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

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I just read over on Generation X Finance that Zecco is offering a number of fabulous free stock trades. In fact, it is possible to get 20 free stock trades if you sign up by September 23. Here is what Jeremy at Generation X Finance writes about the promo:

Zecco Trading is offering 20 free stock trades — a $90 value — to all new brokerage customers who sign up by Sunday, September 13th 2009! Use promo code “bonus1” to qualify.

These free stock trades are special, because you have a whole 90 days to use them. Some other brokerages give you free equity trades to use within 30 days of signing up, so by the time you transfer money into your account, the free stock trades might have expired! With Zecco Trading, you have more time to use your free stock trades when it makes sense to trade.

Now, if you are into picking stocks, this might be a good time for you to head on over and try it out. Even if you aren’t normally into stock picking, it could still be a good time to buy a few shares of something that you feel has long-term buy and hold potential. The stock market, though choppy lately, is generally on the way up. If you want to make a little extra money, it might be worth it to get in now, while the getting is good (and cheap).

I’m tempted to take advantage of this offer myself. I like the idea of cheap trades, and online trading. For the most part, I’m an index fund gal, but there are some good bargains out there. Although, judging from my current performance on Umoo.com’s stock trading game, I’m a horrible stock picker.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.