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URL:  https://boards.fool.com/foolishcop-and-mac750-and-other-lurkers-i-was-20559537.aspx

Subject:  Re: What is the path to growth? Date:  3/29/2004  2:54 PM
Author:  gbbiehle Number:  312 of 766

FoolishCop and Mac750 (and other lurkers) -

I was basing my valuations on the following assumptions:

3 stage DCF model
5% growth for years 1-5
5% growth for years 6-10
2% growth for years 11 and on
11% discount rate
$42million in net cash
13.6 million shares
$0.55 /share current earnings

This yielded $7.70 in net present value from the earnings plus $3.09 in cash for total of $10.79/share

Using a 15% discount rate drops the value to $8.29/share

I don't always run valuations like that, I just happened to use DCF this time because I felt like the sales were relatively predictable.

Disclosure: I own a small quantity of shares that are currently at a small loss. I am planning on selling, based on this evaluation

gbbiehle


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