Forum Archive Index - July 2001

["Andrew Smith" <smith5@free.net.nz>]

Thank you SNOOPY, I am impressed. That was a question I asked quite some
time back. The second question more related to the attached document. Where
it discussed form memory the huge negative impact on share prices should
growth companies which have had historic long term growth (like BCH) not
deliver for some reason or other. People seem to jump ship very quickly. It
worries me so I don't tend to buy them. Although if BCH comes back $8 I will
be tempted

Regards
Andrew
----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, July 26, 2001 12:19 PM
Subject: Re: [sharechat] Growth & Value


> I don't like leaving unanswered questions, so digging back into the
> archives....
> >
> >
> > Question: Return on Invested capital(ROIC), is IC the share price
> > less = debt?
> >
> >
> No.   The Invested Capital (IC) is all the cash invested in a
> company's business since its inception.  That includes initial
> capital, retained earnings and proceeds from share placements and
> cash issues.
>
> This issue is discussed at length in 'Economic Model V16'. It is an
> excellent 33 page pdf which may be found at:
>
> http://www.geocities.com/andrewychan/index.html
>
> This was the site recently uncovered by Philip Robinson and
> lately added to Gerry's 'Learning To Invest' reference list.
> >
> >
> > Is this not likely to effect companies such as BCH?
> >
> >
> If the share price of Baycorp either rises or falls this has no
> effect on the Return on Invested capital as I see it.  But obviously
> share price rises and falls do have an effect on the value of any
> investment. SNOOPY
>
>
>
> ---------------------------------
> Message sent by Snoopy
> e-mail  tennyson@caverock.net.nz
> on Pegasus Mail version 2.55
> ----------------------------------
> "Q: If you call a dog tail a leg, how many legs does a dog have?"
> "A: Four.  Calling a tail a leg doesn't make it a leg."
>
>
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