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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Chuzzlewit who wrote (21241)5/3/1998 6:16:00 PM
From: jbe  Read Replies (1) of 95453
 
Thanks, Chuzzlewit, for opening the valuation can of worms, as I hoped you would do.

Problem is, we are back to a conversation we have had before: how does an amateur like myself (and like most other investors who are not financial analysts) estimate "the present value of the future stream of free cash flows"? How does one estimate what those "future" free cash flows will even be, when there are so many competing (and often irreconcilable) ways of estimating present free cash flows? (I started a whole SI thread on this subject, and finally gave up in despair.)

Is there some rough-and-ready, short cut, rule of thumb type method, to winnow out prime candidates? That is, one cannot reasonably expect the non-full-time investor to spend hours poring over annual reports of EVERY company out there!

Second question/request: Please explain (in layman's terms, if possible) what MPT is. (And which of the companies we have been talking about on this thread has the mostest MPT!)

Thanks again.

jbe
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