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: Michael Burry who wrote (3779)	4/8/1998 6:09:00 PM
From: Don S.Boller	Respond to of 79047

Michael: There is an article in the new issue of Forbes magazine.... page 248 (April 20th),titled "Reality Check"...it lays out the method used by Ernst Institutional Research - to evaluate earnings clients such as Fidelity Investmts., Colonial Funds,atc. Ernst's formula starts by comparing a co's growth in net worth over the course of a year to its growth in operating assets (basically plant, equip.,inventory). You subtract the latter from the former. The re- sult is a crude measure of...free cash flow...(putting a poss. dividend this is the amount of cash that has piled up. Then take this fig. and subtract the growth in liabilities...(in the ex. used - no change in liabs.). Divide the free cash by sales to get a percentage fig. In the ex. = 3% (ratio). This figure, in and of itself, is not meaningful. What is important is an upward or downward trend...One way to use the trend is to compare a co's.cash flow trend to its valuation. They give tables showing good p/e versus trend stocks and overpriced ones, too. Hope I'm not intruding here, with this. Best, Don

To: Michael Burry who wrote (3779)	4/8/1998 6:54:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 79047

I'd like to hear others' opinions on this question. Was yesterday the point of maximum fear on tobacco stocks? Or will it get worse?

To: Michael Burry who wrote (3779)	4/8/1998 10:22:00 PM
From: Scott Mc	Respond to of 79047

Mike, I think thats why I invest in so many companies, management(people)are so unpredictible, as well so many other things that can go wrong.... I have A FANTASTIC VALUE Play for my buddies on the Value thread, its a little known secret that if you send an E-Mail to the web mistress and request a SI T-Shirt she will send you one, I just received it today, it has the SI login pic on the front and the URL on the back and I look forward to wearing it when I run tomorrow.. best of all its free. Scott

To: Michael Burry who wrote (3779)	4/9/1998 12:35:00 AM
From: Shane M	Read Replies (1) \| Respond to of 79047

Thread, I don't see sales growth as a major consideration discussed by many on the thread here, and I was wondering if posters would mind commenting on how they view sales growth in a value context. To me personally, it is so crucial that I will rarely consider a company that doesn't have a history of positive sales growth, preferably 10%+ annually. On historical screens that I run, low valuation stocks with decent sales growth tend to consistently outperform the market. Opinions?