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No. of Recommendations: 0
I do not agree with your assessment of ASX, particularly the Flow Ratio and the Gross Margins:

Australian Stock Exchange 97 98 99
Cash 82421 60884 101251
Current Assets 146573 185581 184882
Borrowings Current 124 192 153
Current Liabilities 28274 37281 60349
Borrowings Non-current 282 477 425
Trading Revenue 115271 133939 152524
Reported EBIT 7522 18712 45644
Adjusted NPAT after Abnormals 15674 16699 37792

Sales Growth >10% +16% +14%
Gross margins > 50% 7% 14% 30%
Net Profit Margin > 7% 14% 12% 25%
Cash > 1.5x total debt 203.01 91.01 175.17
Flow ratio < 1.25 2.28 3.36 1.39

Cochlear has much better Flow Ratios over the past 5 years, but still only have Gross Margins of 13-20% instead of the required 50%. Still, that hasn't stopped me from buying some of their shares!

Regards, Max
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