Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dale Baker who wrote (43164)	7/3/2011 11:23:15 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78740

Oh, voe! You just demolished a single forward-looking Value Investing valuation approach. What we gonna do now? Go back to those backwards looking ratios? But you know that "market pays for future earnings, not the past ones"(c) Clownbuck. What to do, what to do? I refuse to invest until all this mess is resolved. :P :)))))))))))))

To: Dale Baker who wrote (43164)	7/4/2011 2:54:24 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78740

I am looking for companies that are good capital allocators (or at least reasonable ones.). if they are FCF does not matter much. lot's of FCF just leads to cases where INTC buys MCAfee and MSFT Skype.... I actually like the MFI - I run the screen as an idea generator every once in a while and get leads. I often don't buy what in sieved out in the screen but similar companies. My preferred valuation method is to look at historical valuation ranges, in particular EV/EBITDA, liquidation values (in some cases), tangible book, PE and estimated growth rates (PEG), and last not least add in a bit of macro vodoo <g>. While I do not care too much about positive FCF, I do avoid companies with negative FCF (those that consume cash), in particular if they don't growth the top line much.