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Gold/Mining/Energy : Range Resources (RRC)
RRC 36.34+0.6%Jan 23 9:30 AM EST

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To: David Lee Smith who wrote (65)5/8/2000 4:01:00 PM
From: Bob Rudd  Read Replies (1) of 82
 
<<I like cash flow per share best>>The problem with cash flow per share measure you employ is that it does factor in debt. EBITDA is cash flow to the entire firm, all the invested capital so total debt + market cap is better reflection of current returns. Just using market cap makes overleveraged players look like great values when they're returns aren't that great. Suggest you consider using enterprise value/EBITDA, [total debt + market cap]/EBITDA. When I did so I came up with 6 for RRC which is in line with industry averages and no great bargain.
They should announce earnings after the close today and have cc tomorrow. If you get CC # Pvt Msg me on it...I'll do likewise...I requested it but IR not so good at returning phone calls.
By the way, what did you think about the compensation package in the proxy. I've seen some comments from shareholders that were 'displeased' to put it mildly.
bob
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