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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Brian K Crawford who wrote (3655)	7/11/1999 9:46:00 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Brian, I've never seen the intrinsic value calculator you mentioned. Thanks for providing the link. I've got a couple of questions (thoughts). I like the idea that it subtracts the long-term debt but I don't understand why it doesn't also add the cash. If the idea is that future earnings can (will) be used to pay off the debt, we shouldn't ignore that cash will also be used. And nothing has more reliable intrinsic value than cash. Do you know of any web site that does a simular calculation that discounts free cash flow instead of earnings? --Mike Buckley

To: Brian K Crawford who wrote (3655)	7/11/1999 11:01:00 AM
From: John Stichnoth	Read Replies (2) \| Respond to of 54805

Brian, Fun link that intrinsic evaluator. Does it always come up with a 25% discount factor, though? Boy, that seems tough! Can't we assume that the risk-adjusted discount factor for dell should be something like 12%? And even lower for csco and the Q?