Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : A room of one's own -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (26)	11/6/2002 8:02:17 AM
From: Mark Adams	Read Replies (1) \| Respond to of 39

A note from ML I happened on this am; Dated 11/04/02 Net Free Cashflow (NFC) is Gaining Momentum. Tom Sowanick There has been a noticeable increase in corporate NFC over the past six-qtrs. The increase should pave the way for further balance sheet improvement, which could lead to narrow credit spreads. The NFC story has not been recognized by the street, as of yet. Hence, it is something different and positive to talk to clients about. Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 NCF blns -$14.01 $20.9 $51.00 $73.63 $135.1 $152.7 All numbers are in billions. Note the huge swing from Q1-01 to Q2-02. The improvement in NFC is a function of a decline in CAPEX spending and outright cost cutting. This is a very positive story for credit and perhaps equities. Assuming that the trend continues---credit spreads could narrow and supply decline.