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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (146875)	11/10/1999 1:17:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Just to bring the discussion of valuation to Dell, here are some cash flow numbers gleaned from the most recent 10-Q Q3 1999 Q3 1998 Operating Income $ 694 $ 483 Operating Cash Flow 1,999 1,098 Free Cash Flow 1,852 943 Free Cash Flow/Dil Share $.6796 $.3386 Note that operating cash flow and free cash flow are considerably higher than operating income. These data show that DELL, in the parlance of the Boston Consulting Group, is a cash cow. Where did this cash go? Much of it was used to retire debt. CTC

To: Chuzzlewit who wrote (146875)	11/10/1999 3:16:00 PM
From: Lee	Read Replies (1) \| Respond to of 176387

Hi Chuzz,..Re:.operating cash flow as a substitute for earnings,largely because it cuts through a lot of accounting nonsense. Thanks for the caveats and explanation. Also, thanks for the McKesson article pointing out possible warning signals, re: operating cash flow fell well below net income in the two quarters before it began talks with McKesson. Cheers, Lee

To: Chuzzlewit who wrote (146875)	11/12/1999 3:55:00 PM
From: HDC	Read Replies (1) \| Respond to of 176387

Chuzz, Hi! RE: The link provided by Lee in Post# 146845 shows that the author takes Sun's projected earnings - adds them together - and brings that figure back to NPV. Would you explain how you make your projections using future cash flow? How do you bring them back to present value? Do you add them together like the writer in the article referenced above? I remember that you covered this subject earlier on this thread. However, I cannot find the related posts. Thanks, Duncan