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

To: Uncle Frank who wrote (48730)	11/9/2001 1:45:55 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Frank, $1.2B in fcf sounds impressive. It was operating cash flow, not free cash flow. Frankly, I have no idea how impressive it is. Do you happen to have their 5 year actuals so we can quantify the trend? No but you can easily look them up in the SEC filings. :) --Mike Buckley

To: Uncle Frank who wrote (48730)	11/9/2001 2:06:35 AM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

Found it, but it was hard :-). From qcom's fy2000 10K: Cash provided by operating activities in fiscal 2000 includes $1,296 million of net cash flow provided by operations offset by $484 million of net working capital requirements. Hmm, it sounds like their operational cash flow (OCF) declined from $1,296 to $1,200, a drop of 7.407407408% despite a 6% top line growth. The $1.4B projection for next year would be 16.6666666667% growth. Shouldn't it track the top line, presuming gross margins don't decline? I don't think maintaining margins a big concern considering the percentage of ipr, which is virtually pure profit, is increasing dramatically. If OCF tracks the top line, they're being conservative with their guidance, since revenues are projected to grow by 15 to 25%. uf