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

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To: Arthur Tang who wrote (84)3/3/1997 7:13:00 AM
From: Reginald Middleton   of 102
 
<Your approach to analysis is very sound. But, you don't seem to build some back ground to lead to your conclusions.>

The background for my subjective conclusions are admittedely posted on other threads.

< Cash flow and earnings, they are for mature businesses.>

This statement is in error. Cash flow analyzes ALL companies equally. the reason the comapy is in business is to generate value for the ivestors, and cash flow analysis (discounted) is a prime way of measuring that business. Wihout guaging cash flows, you are pretty much lost as to the value of an investment. DCF is actually more importatn for newer companies than mature comapnies, for you can guage, in part, (from historical performance) the future value of a mature company. New companies have little or no such track record.
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