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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (718)	2/19/2004 9:41:06 PM
From: tinkershaw	Read Replies (2) \| Respond to of 2955

Huey, I believe the article makes great fundamental sense. If all your free cash flow is spent buying back stock to compensate for stock options, then you have $0 free cash flow as it is essentially the cost of employing labor. The stock market doesn't seem to pay much creedence to this however. Cisco continues to rock on, Broadcom still to this day cannot seem to produce free cash flows of any material sorts and that is without paying for stock options. Therefore, as to investing, I don't know what to say. The market seems not to pay too much attention to it. However, fundamentally it is a big deal. I wonder how much Qualcomm pays for its stock options (no time to look myself) but I'd still wager QCOM still churns out enormous FCFs even with this, unlike Siebel. If one wants to be really picky in their LTBH stocks, perhaps this is another element one can employ. Tinker