Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: cfimx who wrote (22705)	11/10/1999 3:34:00 PM
From: jim kelley	Read Replies (3) \| Respond to of 64865

Twister, You are correct the analysis is a bogus hypeing of the stock value. The "free cashflow" should be used in a NPV calculation. This guy is using operating cash flow which greatly overstates the value of the stock. Here is the real data from SUNW 10-K: Operating Income 1,522 M Operating Cashflow 2,516 M Free Cashflow 420 M Check this out: Message 11874320 At 46 times (S&P average) free cash flow, SUNW is only worth $24/share. Note : "Free Cashflow" is "operating cashflow" minus investment cash expended. This is what is required to keep the business going.