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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Stu R who wrote (43488)6/15/2001 2:10:25 AM
From: JAPG  Read Replies (1) of 54805
 
Stu,

IMO, the only way a company could have 0 value --when the cash flow growth rate is 0%-- is when the initial cash flow is negative. That would mean that the 0% growth of a negative cash flow will - in time-- drive shareholders equity to 0, thus; share value would be 0.

From what I know, that is neither the case for SEBL nor CSCO. The 2 companies in the report with 0 value in the middle column.

From the article: Howell enlisted the help of several number-crunching MBAs (his students). I believe that Mr. Howell may have forgotten to check their homework. That´s why I would have liked to see their assumptions and methodology.

In view of this, their results discredit the article. Shame, because I thought that they could have made a good point.

JAPG
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