persistone:I don't do all valuation by discounted cash flow.It...

persistone:

I don't do all valuation by discounted cash flow.

It is just one of the tools I use and I will apply that method only when I think I am interested in some stock and want to have a closer look.

By the way, as I look closer this morning at FLT, I find out why FLT carries such a huge cash position.

There are only about 35% of the cash held belongs to FLT, and the rest is in the client account which shall be paid to the airlines or some other suppliers in the future. So when u subtract the overdraft and net borrowings from that 36% of total cash position, the amount of net cash averaged to each share will be even less.

So the catalyst in FLT's share I suggested is only my immature imagination. In addition, although DCF indicates that FLT bears an intrinsic value of $30, the beginning year free cash flow $2.25 (FY2010) is with some uncertainty. Anyway, $27 is my bottom guess.

I don't have much cash on hand so unless I am convinced that there are some real value inside, I'll hold on or just go somewhere else.

Unless FLT falls below $15 which doesn't seem very likely today, I will not buy it.

Thanks for all ur prior sharing Persistone.