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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated

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To: Jim Mullens who wrote (179)10/30/2003 3:43:41 PM
From: Mike Buckley  Read Replies (1) of 2955
 
“I like Qualcom, but its price discounts perfection.”

How so?


My answer: The enterprise value is the equivalent of about 30 years of trailing free cash flow. If free cash flow annually increases 50% for the next three years and the enterprise value remains unchanged, only then will the value be the equivalent of about 10 years of free cash flow.

--Mike Buckley
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