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

To: rkral who wrote (943)	6/14/2004 8:35:32 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 2955

Ron, I'm curious as to whether or not you also use FCFPDS as the basis for company-to-company comparisons. Nope. Comparing FCFPDS between companies is no more meaningful than comparing EPS between companies. It's all relative to what the market is paying for the EPS or the FCFPDS. But you can't take EPS or FCFPDS out of context. We wouldn't or at least we shouldn't pay the same stock price for two companies that have the same EPS or FCFPDS when one is cash-rich and the other is debt-poor, or when one is growing its business and the other is experiencing negative growth. --Mike Buckley