BIG difference between stock analysis via the "Warren Buffet Way" and a stock in Warren's porfolio...don't confuse the two assessments or you might end up losing your ass......essments.
I saw the Robert Hagstrom site at www.quicken.com/investments/strategies/whois/?picks=hagstromHagstrom thinks Xeta has a per share intrinsic value of over $300 its OK to disagree but what is wrong with his calculation?.Even if he is wrong I think his homepage is a good starting point to find undervalued stocks and I think Xeta could be a very worthwhile longterm investment (once they get their homepage sorted out!!).
They should calculate per share divedend instead of cash flow in determining its intrinsic value, but since there is no div. payout, its a little bit more difficult. ex. Net income + dep. - change in adjusted cash flow - capital spending will give you the "free cash flow" for the company. Determine the growth rate of the free cash flow and then discount. I myself bought 500 shares because the intrinsic value that I calculated was around 40 - 45 per share. 300 is a little too high and too optimistic.
Thats how I bought CD 3 months ago at 11 per share
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