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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (38213)	6/7/2010 10:59:14 PM
From: puborectalis	Respond to of 78715

The Fed chairman expressed general contentment with the financial reform legislation moving though Congress, calling it a "pretty sensible approach." Congressional leaders are picking select groups of members to participate in efforts to reconcile the financial-industry regulation bills approved by the House and Senate. The group is hoping to formally begin working out differences between the two bills during the week of June 14 and finish before July 4th. Noting that there were a "lot of pieces" to the measures, Bernanke said there were some things he would change, but went on to say that the legislation contain measures aimed at controlling the "too-big-to fail" issue. This is the "acid test" for any reform, he said. The House and Senate bills both create a system to dismantle a failing Lehman-like mega-bank so that its collapse doesn't unsettle the markets. Even though each chamber covers the costs of such a mechanism differently, both have the same principle: empowering bank regulators to allocate funds to the counterparties of the collapsing institution so that they don't fail as well.

To: Spekulatius who wrote (38213)	6/8/2010 10:45:34 AM
From: Kapusta Kid	Read Replies (1) \| Respond to of 78715

I follow. Kind of. I've read about the work of Ernst and Fotta, who came up with something called 'Dual Cash Flow'. Although I haven't been able to find the specifics of their method anywhere, from other sources I have been able to infer that they take a standard calculation of FCF (like mine), then subtract out what they call 'Balance Sheet Cash Flow' (changes in working capital, etc.). The result is 'Dual Cash Flow', which is probably a lot like your calculation, at least in spirit and/or intent. Anyway, my method makes for a good way to screen for stocks, but screening is only the beginning of the process. I'm struggling with this stuff, but sometimes the struggle is worth it. I would appreciate someone pointing me to a good source of information on this topic. Thanks for your remarks, Spek.