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To: Stu R who wrote (43488)	6/14/2001 4:35:53 PM
From: Jurgis Bekepuris	Respond to of 54805

Stu, Unfortunately without getting their model it is impossible to answer your critique. I suspect that they get their results because they subtract the debt and they also compare the free-cash-flow with some risk-free investment (discounting), e.g. treasuries. Depending on the discount rate you may get different values. Book value for tech companies is usually useless, since most of it will be goodwill and quickly depreciating equipment. I would agree that without understanding their model the data is useless. Jurgis

To: Stu R who wrote (43488)	6/15/2001 2:10:25 AM
From: JAPG	Read Replies (1) \| Respond to of 54805

Stu, IMO, the only way a company could have 0 value --when the cash flow growth rate is 0%-- is when the initial cash flow is negative. That would mean that the 0% growth of a negative cash flow will - in time-- drive shareholders equity to 0, thus; share value would be 0. From what I know, that is neither the case for SEBL nor CSCO. The 2 companies in the report with 0 value in the middle column. From the article: Howell enlisted the help of several number-crunching MBAs (his students). I believe that Mr. Howell may have forgotten to check their homework. That´s why I would have liked to see their assumptions and methodology. In view of this, their results discredit the article. Shame, because I thought that they could have made a good point. JAPG