SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Gorilla and King Portfolio Candidates

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ggamer who wrote (20464)3/17/2000 4:19:00 PM
From: John Stichnoth  Read Replies (1) of 54805
 
Re: Is it better to invest in a strong king or take risks with future gorilla potentials?

That is what the "Understanding the Stock Market" chapter is all about--GAP, and CAP. What is the total net present value of the company's future earnings? What amount is the market discounting (i.e., what's its market cap)? King JDSU discounts a lot more future earnings than GMST, for instance, since its mkt cap is so much larger than GMST's. So, even though it is "just" a king, the market is expecting greater things from it than from pre-gorilla GMST. That may be correct, since JDSU's opportunity is so much greater.

Best,
John
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext