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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: TRIIBoy who wrote (11822)	11/2/1999 4:46:00 PM
From: Walk Softly	Respond to of 18998

TRIIBoy.... the flaw in FCF is the inclusion of investing activity which can cloak operational CF (OCF), which is what I used... you want to use the pure stuff like OCF as a sign of health similar to EBITDA... no one in corporate acquisitions would even look at FCF in valuation analysis, save maybe a rookie.... but, he'd get set straight first day on the job, it'd be a horrible conceptual mistake for a rookie trying to impress his boss.... should be obvious to someone with your alleged vaaaassssst experience that BFT is getting setup for sale.... hence, the emphasis in the eps report on EBITDA and OCF as these are the valuation criteria necessary for such analysis, and the technical bottoming activity, selloff and all for a good pop on the announcement.... BFT telegraphing this message really doesn't guarantee anyone might notice though.... BFT's OCF/BITDA would be a nice cherry for anyone in the hotel/gaming/leisure/recreation industries looking to improve their cash generation ability.... and I haven't even mentioned eps growth and little sleepy items like operational leverage which will allow BFT to continue to improve margins bringing 2 bucks to eps for each buck increase in revs.... if you'd like a recommendation for a good business school... you let me know:-) The specialist has trap doored BFT to 22 twice in the last 2 weeks making me some real nice bucks on the bounce... but the big dough is just getting ready to roll..... ES