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

To: Mike Buckley who wrote (48543)	11/3/2001 7:25:00 PM
From: Pirah Naman	Respond to of 54805

Mike: There's actually a lot more to what I'm thinking than I'm discussing. I know. :-) It has to do with .... I figured that - hence my <vbg> in the previous post. - Pirah

To: Mike Buckley who wrote (48543)	11/3/2001 7:40:22 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 54805

hi Mike, MICAP focuses on the growth of adjusted free cash flow. i remember ROFLMAO at all the folks who used to harp about CSCO's free cash flow growth, which was largely fueled by tax credits from option exercises. this was common at many cos, and i suspect will be again if the hypesters can ever get the bubble back into full gear. the above is to say that free cash flow may not always be a good indicator.

To: Mike Buckley who wrote (48543)	11/3/2001 7:44:47 PM
From: Thomas Mercer-Hursh	Respond to of 54805

I agree that both approaches are essentially the same. The primary difference in using the market-implied growth as a point of departure is that the investor begins by questioning the market. To some extent, going both ways provides a sort of sensitivity analysis since it tells us something about the gap between the market and the value based on projection.

To: Mike Buckley who wrote (48543)	11/3/2001 8:06:57 PM
From: hueyone	Read Replies (1) \| Respond to of 54805

MICAP focuses on the growth of adjusted free cash flow. Did Mauboussin use the expression "adjusted free cash flow"? If so, when did he use it and how does he define it? When I used that expression last June to describe SEBL's free cash flow after adjusting it to remove the tax benefit from exercise of stock options, I was not aware that the expression "adjusted free cash flow" existed in some manner in the finance field. We also noted at the time that it may be necessary to adjust free cash flow in other ways (besides tax benefit from stock options) to best approximate earnings available to owners. Best, Huey