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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Stock Farmer who wrote (48818)11/13/2001 1:11:03 AM
From: EnricoPalazzo  Read Replies (1) of 54805
 
Adding book net of paid in capital plus annuity value of FCF (20 years @ 15% growth, dilution of 3% and rate of return 6% with residual value of zero) gives about $72 per share vs current price of $67. No room for risk or gorillaesque S&P trompling astounding rate of return... but much closer than most come.

residual value of zero and 20 years both seem like severe numbers, although they might balance each other out. Do you really see 20 years of 15% growth from Microsoft?

ardethan@devilsadvocate.net
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