Hi everyone,

So over the weekend, I got TTM FCF, share count, and recent price data for the over 2800 companies in the Russell 3000 index. I then (automatically!!) generated a predicted price assuming a 5.0 / 2.5 / 0 growth pattern. (Remember, that's shorthand for % CAGR for first five years / % CAGR second five years / Terminal growth rate.)

Then I scanned through the list to see what companies had prices higher than the latest. There were a lot of financial firms -- banks and insurance companies primarily -- on the list, but also a bunch that were in other industries. (I ignored those financial firms.) Microsoft wasn't on the resulting list because the latest numbers are 6.1 / 3.1 / 2.5. But, Oshkosh and Power-One were on the list. (Transocean wasn't though, because it's not a member of the index.)

Here's what came through, and what MUE growth rates are expected at last night's close, at a 15% discount rate.

Company         Ticker       Expectation
Boise             BZ      -18.9 / -9.5 / 0
Cabela's         CAB        2.4 /  1.4 / 0
Dean Foods        DF       -5.8 / -2.8 / 0
Domtar           UFS      -14.6 / -8.3 / 0
Dr Pepper        DPS       -2.7 / -1.4 / 0
Excel Maritime   EXM       -5.0 / -2.5 / 0
Helen of Troy   HELE        0.7 /  0.4 / 0
Kratos Defense  KTOS       -0.2 / -0.1 / 0
L-3 Comm.        LLL       -0.4 / -0.2 / 0
Lexmark          LXK       -1.3 / -0.7 / 0
Micron Tech.      MU      -15.9 / -7.9 / 0
Noranda Alum.    NOR      -14.4 / -7.2 / 0
NRG Energy       NRG      -13.0 / -6.5 / 0
Pulte Group      PHM      -24.8 /-12.4 / 0
Safeway          SWY       -2.1 / -1.1 / 0
Sprint Nextel      S       -7.3 / -3.6 / 0
Sunoco           SUN       -0.7 / -0.4 / 0
Supervalu        SVU      -23.9 /-12.0 / 0
Textron          TXT       -1.6 / -0.8 / 0
Unisys           UIS       -5.1 / -2.6 / 0
Verizon           VZ       -4.4 / -2.2 / 0
Western Digital  WDC        1.3 /  0.6 / 0

An interesting list and it covers quite a range of industries.

Cheers,
Jim