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Strategies & Market Trends : Free Cash Flow as Value Criterion

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To: jbe who wrote (212)11/17/1997 6:51:00 AM
From: STYK  Read Replies (1) of 253
 
Doing a little back testing in Telescan, the most important criteria in conjunction with FCF for the large caps is Company/ S&P growth ratio. High ratio just so happens to produce the companies with high FCF. Here is a result from 18 months ago to the market top, excluding banks and autos for the top ten stocks:

Stocks in Specified Industries

Criteria Criteria Values
__________________________________________________
FREE CASH FLOW/SHARE High 100%
MARKET CAPITALIZATION 1000.0-999999.0 a
RETURN ON EQUITY List Only
DEBT/EQUITY RATIO List Only
P/E RATIO List Only
PRICE/SALES RATIO List Only
STOCK PRICE List Only
CO/S&P GROWTH RATIO High 100%
PROJCTD P/E NXT FY List Only

Top ten:
CPQ IBM DWD TRV
ALL DOW AA CAT
AXP INTC

Average Total Return = 106.0%
DJI Total Return = 42.4%
NYSE Total Return = 40.9%
S&P 500 Total Return = 44.2%
NASDAQ Total Return = 37.9%
ASE Total Return = 15.7%

***

The current top ten are:
COMS SUNW HFS INTC
HI CSCO CSX DELL
FDC ORCL
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