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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?

To: Scott H. Davis who wrote (962)	5/25/1998 10:10:00 AM
From: ftth	Read Replies (1) \| Respond to of 1720

Hi Scott, here's a few thoughts: Cash Flow Coverage Ratio=Pretax CF from operations/Fixed charges. (The higher the CFCR, the less of a burden the company's debt becomes). For P/S and profit margin, the ratio of: Net margin/PSR is a pretty good way to compare across companies within an industry. This can be further refined to include multiple periods also (i.e. weighted composite). For ROE and D/E, I've used a screen for D/E less than some value as part of a list of criteria, then rank the results by ROE. Yes this has some flaws, and may unfairly exclude certain companies or industries, but to take this one step further would require detailed analysis of each individual company's financials and judgement calls (very time consuming for a list of 100+ companies). I was looking for a computer-based screen, so I accept the fact that I exclude higher debt companies that may not justify being excluded. dh

To: Scott H. Davis who wrote (962)	5/25/1998 11:50:00 PM
From: HeyRainier	Read Replies (1) \| Respond to of 1720

[ Data Dimensions: DDIM ] Scott, do you agree with the Fundamental outlook that is outlined for DDIM by First Call? Growth estimates look very interesting, and if it gets met, perhaps a trip to the old highs might be possible. The greatest fundamental problem is how they are going to diversify their business away from a business that has an expiration date. With Wall Street looking ahead, it would seem plausible to think that this will never get off the ground again. I'm trying to get some secondary confirmations of my readings on the TA and FA of this issue, that's why I'm asking both you and Dave. Any others who can provide some added perspective are very much invited for input. Regards, Rainier