Free Cash Flow as Value Criterion Message Board

STOCKTALK

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.

Strategies & Market Trends : Free Cash Flow as Value Criterion

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Pirah Naman who wrote (60)	10/30/1997 7:41:00 PM
From: Reginald Middleton	Read Replies (3) of 253

<That's the idea. FCF is cash above and beyond what they need to grow the business. What are the acceptable uses for it? Buy back stock, increase dividend, pay down debt, let it pile up and make some acquisition.> Unless a stock buy back action is aimed at fuding a compensation plan, it should be considered a stern warning about MGMT's outlook for future growth. The stock buy back tells the astute investor that mgmt. cannot find an internal/external investment that is forecasted to yield anything higher than its own cost of capital. This is a BIG negative. RCM rcmfinancial.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next