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Strategies & Market Trends : Value Investing

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To: James Clarke who wrote (4498)7/26/1998 8:50:00 PM
From: Reginald Middleton   of 78687
 
<That said, though, free cash flow is the most critical concept in investing. Wall Street is obsessed with EPS and quarterly earnings forecasts, which I just consider silly. But really, that is all anybody talks about.
1. You can doctor earnings, but you can't fake free cash flow
2. You can't spend earnings>

Wall street sell side analysts are obsessed with EPS, but the market is not. I have offered large amounts of evidence as proof to support this assertion. The market actually values DCF more than earnings, as a long as you realize that DCF must be reconciled with reality.
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