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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Mike Buckley who wrote (30400)8/24/2000 1:42:41 PM
From: ratan lal  Read Replies (1) of 54805
 
Mike,

Tell me what's wrong with my thinking.

All numbers should be taken without regard to the type of business.

Industries that have high cash flows and low A/R would mean that there is less risk in that industry than in another.

Since SEBL has increased A/P that means their execution has to be near perfect else they will not receive those funds. Meanwhile their expenses continue in expectation of receiving those funds.

Conversely, the cost of entry into that field goes up since the new co. has to spend huge sums of money up front for development and then carry A/P for longer periods of time.

That is why you will never catch the mafia entering any business other cash. And we all know how profitable that business is.
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