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To: Pirah Naman who wrote (50201)	2/5/2002 8:35:55 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

>> In past GKI and W&W indexes, and current indexes, there are companies who have never made real profit. That's an interesting observation, Pirah. Putting the W&W aside, which components of the 4 editions of the GKI have never made a "real profit"? uf

To: Pirah Naman who wrote (50201)	2/6/2002 6:37:04 PM
From: gdichaz	Read Replies (1) \| Respond to of 54805

Pirah: Much appreciate your thoughtful response to my post. Very useful, and your points are well taken. What I was trying to say in my limited way was that while earnings however defined are a weak reed on which to lean, cash flow is a more useful guide to what has actually happened. Projections though depend on some understanding of the technology which is the base of the company's prospects in the case of Qualcomm for example. Not so for Coke. There ain't none. So, while it is good to look back, it is also useful to look forward. And while it may be that a projection of cash flow is technologically blind, I doubt the efficacy of any such approach. To project forward would seem to require a good understanding of the technological basis for the company's future, where the company stands in its industry and what its strengths are in IP in a case such as Qualcomm. Then a cash flow analysis would be a sensible approach - with a clear set of assumptions laid out. Best. Cha2