How about taking some of that $50 billion in free cash and buy more bandwidth, eh?

In other words, the free cash flows increase, which automatically means value creation.

On its balance sheet it has over $200m in free cash.

Tyco generated $1.4 billion in "free cash," up more than 50 percent from a year earlier.

"Many companies can generate a lot of free cash but don't know what to do with it," he said.

The thinking here is that if companies have free cash, they will postpone making hard decisions.

This is not free cash for corrupt public officials like the ones we have in our country.

"I think Wall Street is missing how much free cash these companies can produce over the next few years," he said.

Younger technology companies typically funnel all their free cash back into financing growth.

The amount of free cash that corporations have on hand has been falling, he said.