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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (6048)	5/1/2002 10:47:13 PM
From: John Pitera	Respond to of 33421

Jacob, there is no question that Book value used in a vaccuum can not properly value many sectors of our equity market today. Cash Flow and especially Free Cash Flow is a really constructive tool in the valuing of businesses. Private Marketplace value is another metric that has been used with great success by Mario Gabelli, Bill Nygren and several others. Barron's had a great cover story on the Tangible vs. intangible book value dichotomy about 18 months ago. The cover picture was of the famed Italian Renaissance Man who among other things invented double entry accounting. That was a great read. :-) John