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Strategies & Market Trends : Free Cash Flow as Value Criterion -- Ignore unavailable to you. Want to Upgrade?

To: jbe who wrote (80)	11/1/1997 12:46:00 PM
From: TimmFred	Read Replies (1) \| Respond to of 253

Does Coinmach Laundry (WDRY) have the monster free cash flow I think it does? I have just started a WDRY thread. PLEASE visit and apply the very impressive principles being discussed here. Admittedly, WDRY is highly leveraged and may therefore not quite fit here. Many thanks.

To: jbe who wrote (80)	11/2/1997 1:44:00 AM
From: Andrew	Read Replies (1) \| Respond to of 253

Joan, looks like we finally fell off the "Hot Subjects" list! :^( Oh well, we had a good run - almost a week! And it's really inspired a lot of soul-searching for me. You know, take a hard look at your assumptions and all that. I find it really clarifies your thought process when you have to articulate it in "print". As a writer I guess you are used to that. It's interesting that we all still believe in our methods (I know I've been very stubborn!). Probably because we were never very far apart to begin with. And this arguing has probably made us understand our methods more clearly by just trying to make a case for them to others. And I know I've benefited from other's insights as well. Hopefully the discussion will keep going... Andrew

To: jbe who wrote (80)	11/2/1997 2:17:00 AM
From: Pirah Naman	Read Replies (1) \| Respond to of 253

jbe: > what do "CF" and "CE" stand for Sorry - short hand for cash flow and capital expenditures. > ) My figures did not indicate that CPQ had great operating cash flow > -- just great FREE cash flow. IMpossible to have great free cash flow without great cash flow. > IBM's -- and SUNW's -- CPQ's, Now that you have the numbers you can compare again. But my point was never that any of them was better than another. My point was that your source is clearly wrong ont eh CPQ figures. Cash flow is higher than free cash flow - and even using the real cash flow values you can't get the free casg flow figures your source had. > 3) Which brings up another point: how is it that some companies (no > matter what source you consult) have lower price/free cash flow ratios than price/cash flow ratios, when the reverse is usually true (the average p/CF ratio for the S&P is about twenty points higher than the p/FCF ratio)? I have never seen this. If you can find me a single example in VL or S&P I'd be very interested. FCF = cash flow - cap exp. As you have written. > 6) Market Guide's Ratio Comparisons (only $5 per month for unlimited use) are unique. Deloitte and Touche has them (free, or at leat they were) - sorry, can't rememebr web address. www.msrn.com is also worth a look. > I agree that the 10-K's are the best source of all -- but you can't start with them. I agree. You do whatever screening method, but you gotta check results at the source, see if your screen tool is good. > Yet another ignorance-revealing question: what's the difference between "cash per share" and "cashflow per share" Cash per share in money sitting in the bank. If management is asleep at the weheel, it could be several years of FCF that they never figures out how to use. Pirah