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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Gottfried who wrote (4682)8/6/2002 11:24:52 AM
From: BWAC  Read Replies (1) | Respond to of 95530
 
<IF an appartment building is generating 15x more cash after 10 years, is it worth 15x more?<

Depends. Was the apartment building operated as an entity and the excess cash generated funneled back into or held by the entity?

An apartment building that spent all its cash on maintenance or doled its excess out as dividends might only be worth the same.

But an apartment building that reinvests its cash and expands into more apartment buildings, while still holding significant portions of the cash generated might well be worth 15 times more.