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Technology Stocks : FDC : First Data Corp
FDC 31.690.0%Aug 5 5:00 PM EST

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To: Uncle Mikey who wrote (3)1/24/1997 8:27:00 PM
From: Brian C   of 323
 
Mike,

Add the depreciation to it's income and than subtract it's capital expenditures and I belive you will find that it generates more true profit (i.e. free cash flow) than it's earnings reflect. If you than assume growth of only 12% for the next 10 years and 5% thereafter and discount this cash flow back I come up with about $46 per share.

I have the spread sheet of another investor that I respect who is even more conservative than I and he comes in at $48. Keep the growth over 20% and it's a homerun. If you have a fax I can fax you his spread sheet, and mine also if I can find it. If you can poke holes in the analysis I'd appreciate the feed back.

I was hoping for another drop below 36 as I was going to buy more.

Brian
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