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

To: Graham Osborn who wrote (56817)	2/2/2016 6:57:24 PM
From: E_K_S	Respond to of 78774

Re: GOOG I like GOOG's technology but I was always skeptical of their accounting. The new accounting is much better and it shows just how much FCF the advertising arm throws off. It still is no value when doing a GN valuation but I need to look at this one in more detail. When you have a company that throws off so much FCF (annual Net income covers LT debt by over 2x!). Also with $103/share in cash ($71bln or about 14% of the market Cap is cash!), that provides a level of safety and huge opportunity to buy good tangible assets on the cheap if/when they become available. In a deflationary environment, these cash rich companies are in the cat-bird seat. What's nice is from the list of companies that have the very large cash positions GOOG's debt is the least by over 5x at only $8bln. MSFT & CSCO have over $45bln & $40Bln respectively. A very good position to be in IMO and they still are showing excellent world-wide growth in a slow growth economy. EKS