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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (29217)12/11/2007 7:59:30 PM
From: E_K_S  Read Replies (1) of 78746
 
Hi Paul - I guess that is why one should evaluate an investment with several different value measures.

From the article you posted for DIS:"... Free cash flow is key to evaluating media firms, DeGulis says. Disney's free cash flow is expected to equal about $2.35 per share in fiscal 2008, which ends in September.
"That should be slightly above earnings of $2.15 a share," DeGulis said. "That's a very healthy situation. Generally for the S&P 500, free cash flow is about half of EPS." ..."

I have had DIS on my watch list and maybe it is time to start a position especially if the analysts sees a 10% growth in their ESPN unit.

One of Buffet's value measures TFCF (True Free Cash Flow) is one I have used with a lot of success especially if the company has a long term track record of posting positive TFCF.

The media sector has underperformed the S&P 500 so perhaps now is a good time to build up your positions.

EKS
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