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The 20 Quarter OC/FC/EBITDA Diagnostics chart shows the fallacy of using EBITDA (EB) as a stock valuation metric as Suprema Specialties generated 20 consecutive record quarters of "positive EBITDA" and 20 quarters of "negative free cash flow" (FC). Suprema's ever increasing negative free cash flow bubble finally burst in 2001 when trading was suspended in its shares at $13 and they reopened at $.03 down 99% after Suprema's subsequent filing for bankruptcy.
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Suprema Specialties Inc
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OC/FC/EBITDA
Nextel Communications Inc (NXTL)
Revlon Inc 20 qtr (REV)
Revlon Inc 5 yr (REV)
Qwest Communications Intl Inc (Q)
Suprema Specialties Inc
Rite Aid Corporation (RAD)
Xerox Corp 20 qtr (XRX)
Xerox Corp 5 yr (XRX)
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