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

To: Judith Williams who wrote (32352)	9/26/2000 11:32:14 AM
From: johndelvecchio	Read Replies (2) \| Respond to of 54805

HI Judith, I don't mean to butt in, but I would be careful with Baruch Lev's analysis. First, it's proprietary, so it would be hard to tell exactly how he does it. I do know that he takes financial assets and assumes they make 4% while physical assets give a 7% return. He backs this out of earnings and divides by 10.5%. However, he came up with an intangible value of Microsoft of over $220 billion, which makes no sense if you use his method from looking at the 10-K. Maybe it is better to understand whether or not a company has sources of intangible value rather than try to calculate it. For example, a company like MSFT takes only about 4% of the revenue from its total web of partners. That means that it is about a $500 billion a year business, give or take. Also, how many developers do they have working on projects, etc, etc. Best, John Del Vecchio