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

To: Mike Buckley who wrote (30368)	8/24/2000 10:27:41 AM
From: johndelvecchio	Read Replies (1) \| Respond to of 54805

Mike, Thank you for the nice welcome. I have been working diligently on CAP (with the great help of FoolishFloyd from the TMF boards) since my first post on the subject. I will be using a full fledged CAP with my own forecasts in a Microsoft report to be released soon. For those here who do not know, CAP is really called SVA or "Shareholder Value Added", and is a type of free cash flow. It's basically reverse engineered so that rather than coming up with the value of the company, you come up with the number of years that justifies the value of the company based on market forecasts. I have tried to find a lot of information on SVA, but with little success. The best resource is Alfred Rappaport's book called Creating Shareholder Value. The other name for CAP is "value growth duration." But, the information is sparse. While I know how to do it correctly, I don't get the kind of results for a SEBL that I am comfortable with like I do for an older firm like MSFT. But, I heard that Rappaport is releasing a new book along with Michael Mauboussin (the guy at capatcolumbia) that should shed some more light on the topic. Best, John