KO

CFA General
#1

grabbing a nice pop here from a nibble I took earlier in the week. Stock is so so dirt cheap on a FCF/sales yield comp

#2

Why would you use FCF/Sales? That does not seem to be the best relative price multiple to use? Infact that would be one of the last PMs I would use.

#3

mpnoonan Wrote: ------------------------------------------------------- > Why would you use FCF/Sales? That does not seem > to be the best relative price multiple to use? > Infact that would be one of the last PMs I would > use. I use a lot more, but this one has worked for me in the past. also EBIT/EV and FCF/EV… show me your toolkit!

#4

Daj, why aren’t you investing in Natty stock?

#5

ditchdigger2CFA Wrote: ------------------------------------------------------- > Daj, why aren’t you investing in Natty stock? BUD. was indirectly, but trimmed off the inbev deal

#6

Scene: Daj passed out on the floor surrounded by empty Natty cans. Daj’s gf: Oh my God, what are you doing? Daj: Burp. Squeezing the shorts…

#7

Correct me if I am wrong, but FCF/Sales is not a yield, it’s a fcf margin. It has no price component in it at all (or, are you saying FCF/mktcap OR sales/mkt cap?). Whether KO is at 46 or 460, this number is exactly the same. EV/EBITDA or any derivation thereof certainly has a price component in it. Im not a stock analyst by any stretch of imagination, so someone please tell me why FCF/Sales makes any sense. I’m with mpnoonan.

#8

grover33 Wrote: ------------------------------------------------------- > Correct me if I am wrong, but FCF/Sales is not a > yield, it’s a fcf margin. It has no price > component in it at all (or, are you saying > FCF/mktcap OR sales/mkt cap?). Whether KO is at 46 > or 460, this number is exactly the same. EV/EBITDA > or any derivation thereof certainly has a price > component in it. Im not a stock analyst by any > stretch of imagination, so someone please tell me > why FCF/Sales makes any sense. I’m with mpnoonan. I saw morningstar use it 3 years ago and it has worked for me since

#9

I saw Enron use deception 7 years ago, hasn’t worked for me since.

#10

daj224 Wrote: ------------------------------------------------------- > grover33 Wrote: > -------------------------------------------------- > ----- > > Correct me if I am wrong, but FCF/Sales is not > a > > yield, it’s a fcf margin. It has no price > > component in it at all (or, are you saying > > FCF/mktcap OR sales/mkt cap?). Whether KO is at > 46 > > or 460, this number is exactly the same. > EV/EBITDA > > or any derivation thereof certainly has a price > > component in it. Im not a stock analyst by any > > stretch of imagination, so someone please tell > me > > why FCF/Sales makes any sense. I’m with > mpnoonan. > > > I saw morningstar use it 3 years ago and it has > worked for me since Gold chains, bellbottom, and platform shoes worked back in the 60’s maybe I should hit the club in that…