Gorilla and King Portfolio Candidates Message Board

STOCKTALK

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 Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bretsky who wrote (20967)	3/22/2000 3:22:00 AM
From: tekboy	Read Replies (2) of 54805

Bretsky, First, congrats on the newest forthcoming threadmember! Second, re Jubak and JDSU, there's some history here, as you well know. Five months ago he warned investors off it because he thought it was too risky going forward given its then-whopping valuation ($32 billion). He recommended SDLI, a worthy but minor competitor in the same area, instead. Message 11902837 I decided to check how that call had turned out, and the results were interesting: siliconinvestor.com SDLI was not a bad call (although its small cumulative advantage is due only to a quicker recovery from this last dip). But what is striking is how similar the charts are: clearly the tornado is lifting all the key players in this area, and at pretty comparable rates to boot: not surprising, perhaps, given that this is a royalty game rather than a gorilla game and so the leader differs from the followers in degree rather than kind. What this all reveals to me is the wisdom of LTB&H over trading. Let's say you liked the optical components sector and bought in to JDSU (then just U) a year ago, then dumped it and switched to SDLI on Jubak's recommendation seven months later, then decided to switch back on his recommendation now. Forget the illogic in buying back in to a stock you left on valuation concerns when it's nearly three times the price; concentrate on the tax consequence of the two transactions involved. SDLI would have had to dominate JDSU during the five months you had it just to cover the tax costs of switching...something that was always highly unlikely.... tekboy/Ares@becomingtortoiserandtortoiser.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next