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Ducati695

11/15/10 9:07 PM

#1292 RE: liljoe #1291

So whats with this .60 bullshit (not bullish though).... im still holding long, but for a 686% rev growth statement this has been way to bearish. I understand there were some fat financing charges which ate away from the E Cash Flows, but that just means future ECF will be much greater. A Cleaner balance sheet and solid revenue growth.... didnt expect this kind of drop.

Simple Gordon Growth Model

V0= FCF/(r-g)

FCF = free cash flows
V0 = firm value
R= cost of capital
G= growth rate

That G term is by far the biggest driver of equity value.... i feel like the market forgot that.... and G is what we have.