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

To: jbe who wrote (215)	11/19/1997 7:48:00 PM
From: Andrew	Read Replies (1) \| Respond to of 253

Joan, The conclusion I reached about Intel was that two fold: on a more "traditional" FCF basis, it looked like a pretty good buy in the 70's. However, once you count in the cost of buying back all those shares, the FCF looks A LOT lower, and I decided that maybe it wasn't such a good deal after all. So I decided not to buy. This is no reflection on Intel's probable bright future; I just felt it wasn't a screaming bargain after all. It also makes me wonder how to look at all those tech companies that AREN'T buying back their shares - allowing stock option dilution. As for your list on post #214, I'm afraid I can't commit the time to researching them all. I'm fully invested for now, and I need to catch up on some other activities that I've been neglecting for quite a while. I will contribute the comment that eliminating AXP on a debt/equity basis is not really fair; as a financial services company, leverage is part of their business. You can't really compare them to manufacturers in that way. On the other hand, it's perfectly reasonable to not want to invest in financial services companies for whatever reason. Andrew