Mike, you still getting fooled by your adjusted free cash flow measurements?
Check this out, from the 10K published last month.
2001 2002 Change
Shareholder Equity: 1,836,102 1,957,450 121,348
Paid In Capital 1,357,422 1,486,612 129,190
Shareholder Gains 478,680 470,838 (7,842)
[lifetime]
If you think you have positive free cash flow and yet you see declining shareholder equity net of paid in capital, something's going on you ought to be thinkin' about.
Learning to read a balance sheet should be mandatory for DIY "investors" who don't want to be taken to the cleaners.
As for $3/sh being a 34% discount from cash & equivalents, remember, it's not like you can buy the cash and duck the liabilities. So price as a percent of cash is a pretty naive metric.
At $3 share, and 552 M fully diluted shares, makes 1,656 M$ market cap. Assets net of liabilities is 1,957 M$. If we set property, plant and equipment at $0.15 on the dollar and value goodwill and intangibles at zero, well at $3 the company is trading at par.
Considering the company wouldn't even be turning a paper profit if it weren't for generous shareholders paying part of the wages of its employees, $3 isn't so crazy after all.
John |
