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Technology Stocks : Citrix Systems (CTXS)
CTXS 103.900.0%Nov 2 5:00 PM EST

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To: Saturn V who wrote (7351)12/6/1999 11:45:00 AM
From: Chuzzlewit  Read Replies (2) of 9068
 
Saturn, I think you are missing several points.

First, free cash flow includes the cash generated by the purchased businesses or capital expenditures. That is the whole point behind making these investments. Wise investments will become apparent as a healthy ROIC. Poor investments will manifest themselves as in the form of a rapidly deteriorating ROIC.

Second, investment in business has nothing to do with avoidance of taxes or keeping cash low. It has everything to do with the generation of cash returns over the long haul for shareholders.

Finally, if tax avoidance for shareholders were the issue the company could simply repurchase its own stock (which acts like a tax-advantaged DRIP because the effective dividend is converted to capital gains).

TTFN,
CTC
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