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Strategies & Market Trends : Professional Equity Analysis - the Pursuit of True Value

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To: Reginald Middleton who wrote (28)1/27/1997 9:18:00 PM
From: cape radical   of 102
 
thanks for the reply (by the way, do you like reginald, reggie, reg or some other variation?).

i am suspicious of any beta values listed for technology stocks. for example, ZOOM has a beta of 2.2 and USRX 3.1. i noticed that PAIR has a beta of 2.44 (can we compare PAIR to CSCC?). the variation of these numbers is extreme. unless the company is leveraged, i generally use a target of 20% as a cost of capital.

i believe that joel stern's most famous EVA example is coke. it seems to me that i recall the CEO of coke singing the praises of EVA. interested readers could probably run a search on EVA and/or MVA to get more information. coincidentally, stern claims that EVA has helped turn around over three hundred of his clients and has only failed in less than five cases. hype or reality? time always tells.
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