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: TimbaBear who wrote (11949)	1/24/2001 7:56:59 AM
From: valueminded	Read Replies (1) \| Respond to of 79044

TimbaBear: I think the idea of a risk free rate is important when discounting future cash flows. I dont think it should incorporate getting paid for market risk as I view that as something altogether different. Hence the need for a relatively accurate risk free rate. For me it is easy to determine. Since I have a mortgage, I use the interest rate of the mortgage. It is essentially risk free (at least for the remainder of the mortgage period). To be compensated for market risk, I like to see about a 40% discount between the calculated value (if you can call it that) and the buy price. Since I am not much for projecting growth rates, I look at just the prior and next year. These companies should be throwing off excess cash. I have a predilection for them to use the cash for dividends, stock buybacks and debt repayment. If not, I tend to avoid. My last stock screen brought up: hkf, mga, nvh & finl. I havent researched any of these except hkf to date. On a first cut, finl is looking interesting. Any comments there? thanks