SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 79.27-1.2%Dec 11 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Stock Farmer who wrote (63027)2/8/2003 10:56:22 PM
From: RetiredNow  Read Replies (1) of 77400
 
Hey John, what you are telling me is that the hypothetical company of yours is worth book value. I'll tell you what, in a previous post, I saw that you have several companies you've started. I'd like to make a deal with you right now to buy one of them that is generating good free cash flow. I'll give you bookvalue for it. Fair enough? Or if you don't like that deal, I'll give you the equivalent of 1 years worth of free cash flow. How about that?

I'm sure you know what I'm getting at. A company's value is not either of the above, but the sum of the discounted free cash flows I can expect after I own the company. In your previous post, you said that discounting future cash flows on this company at 6%, would give us a value of $1,500 today. Divide that by 100 shares and that gives us a value of $15 per share. So if you're willing to sell it to me for $10, I'll take it. A return of 50% on my money in the time it takes us to close the deal sounds pretty good to me.

After I buy the company, I'll start cutting back on those stock options issuance and take home some extra money each year. Or I'll plow it right back into the company and growth the revenues. Either way, this is a deal I can make money on.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News