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To: Bob Rudd who wrote (11810)	1/11/2001 3:18:32 PM
From: sjemmeri	Respond to of 78476

I've just started comparing an O'S screen portfolio which I then divided into low and high debt halves. I'd love to test it over 50 years of data but I'll see what happens this year.

To: Bob Rudd who wrote (11810)	1/11/2001 5:26:22 PM
From: TimbaBear	Read Replies (1) \| Respond to of 78476

One of the really tough things about FCF though is figuring what's maintenance CAPEX and what's investment CAPEX. Sometimes they're appropriately separated, sometimes not. I agree. I also have a problem with adding back all Depreciation and Amortization due to opinion I have that some of it really is a loss of useful value and therefore should not be added back. I ran across a formula (or a limit for a screen, maybe) that limited CAPEX add-backs to 110% of Depreciation and Amortization. I don't know what I think about that yet. It is all so company-specific that it is difficult generalizing. I think I would rather not add back Depreciation and Amortization and not subtract out CAPEX, and use a CFO adjusted to neutralize significant one-time events, but excluding the D&A adjustment.