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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (14109)	3/9/2002 12:32:37 PM
From: 249443	Read Replies (1) \| Respond to of 78752

Good morning Grommit, Message #14109 from Grommit at Mar 9, 2002 11:36 AM "...It sounds like a good company and they have wonderful plans. Buy what makes it a buy at $20 price, a 20 P/E...?" I do not value the stock on a P/E ratio. Without looking at the exact #s, the stock is trading at about a 11x free cash flow. This issue was addressed on the last conference call. The web site has a 80+ power point file that is very helpful in calculating Brascan's cash flow. The company also has an excellent credit rating. I value the company based on the true value of Brascan's assets (not just the stock market value of its publicly traded holdings like its real estate equity holdings), new management's focus, and the net intrinsic value. Analysts currently calculate the book value based, in part, on the equity's stock holdings. I never base a value just on P/E, P/S, etc. For anyone who attended Mr. Whitman's annual meeting last November, the management appears to be intelligent, enthusiastic and focused. The quarterly numbers provided support for management's guidance.