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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: EnricoPalazzo who wrote (43372)6/11/2001 1:42:09 PM
From: Pirah Naman  Read Replies (2) of 54805
 
Based upon the most recent quarterly ($87.9M in cash flow on 424.62M shares) and upon historical trends in capital expenditures, if BEA had flat business for the next year, I would estimate a free cash flow of $0.57 - $0.60 per share. 60-65 times FCF is very expensive, no argument. Of course if BEA meets the 40+% growth rate they project, which is much less than their growth in revenues to date, then the stock becomes merely expensive.

- Pirah
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