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.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (11850)	1/14/2001 3:20:43 PM
From: MCsweet	Respond to of 78634

Don Earl, You make a good point about free cash flow --- MOVI does have to keep investing cash in the business and that should be accounted for in the analysis, but consider the following: 1. Video stores do not HAVE to buy new stores to generate revenue. They may HAVE to buy new stores to generate revenue growth, but let me remind you this a VALUE stock. 2. If you do the math, you'll set that total liabilities have decreased (see most recent 10-Q), while at the same MOVI has repurchased $5 million in stock and grown revenues. Furthermore, if you look at the latest press release (rather than the dated material you are using), you'll see long-term debt has decreased by $4 million. So your comment about running up credit is totally off-base. 3. Furthermore, MOVI is toning down their # of new store acquisitions, which will improve free cash flow. Perhaps your response is a fair reaction to over-zealous cheerleading on my part, but before you put forth your analysis in such an acerbic and pompous fashion, make sure to do your homework. MC