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

To: jbe who wrote (95)	11/2/1997 9:20:00 PM
From: TimmFred	Respond to of 253

jbe, thanks for the WDRY feedback. The bond raters share your concern about the debt/equity ratio, which is probably why WDRY is doing a secondary. One reason for my interest in the stock is that I suspect that the debt/equity ratio is misleading, in that little value is apparently accorded to some 420,000 washer/dryers in place despite the huge number of quarters those machines swallow. However, I agree that the debt is daunting in "absolute" (I use that word advisedly in light of the rigorous level of discourse on this board) terms. The plus side, acknowledged by the bond raters, is that the cash stream is dependable so long as clean clothes remain in style.