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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (12088)	1/6/2000 3:06:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 21876

Gary, the approach I use is not "value" in the generally accepted sense. The "value" investor uses balance sheet metrics like book value and metrics from income statements and price like trailing P/E. He looks for a stock that is under-appreciated by the market. The approach I use is includes expectations of future growth, but those expectations are tempered by risk. Technology companies are inherently riskier than most other companies. That means that I am willing to bet on the come. The most important distinction between my method and those of other analysts is my focus (some might say obsession) on free cash flow rather than earnings. So I think it's fair to say that the only things I exclude from my calculations are issues related to investor sentiment. I am content to buy stocks that are fully valued (and then some) by the metrics I use, and invariably grossly overvalued by the methods that "value" investors use. In fact, I would go so far as to say that "value", as I defined it above, is an illusion. TTFN, CTC