Jason W, another concern i have about CF is this a mass market product or a niche product? Will investors really want to own a CF stock? I guess if SNDK become a gorilla and just dominates this market and is able to grow earnings at over 30% for the next 10 years or something then yes they will. I expect investors to scream for RMBS shares if RMBS does become the gorilla of SDRAM, DDRRAM, and RDRAM market.
OK, how do you explain the underperformance of many companies who would have been called the Gorillas and Kings of their day?
Examples: Amdahl, Atari, Borland, Cray, Digital, Iomega, Lotus, Polaroid, MITS, Netscape, Novell, RCA, Teledyne, US Robotics, Xerox, Western Digital, WordStar, Zilog.
gorillas don't last forever. Moore does say to watch out for discontinuous innovations that could put the gorilla out of business. Basically, gorilla investing provide a great level of safety, but also nice if not great returns. That's the idea i got anyway. Netscape wasn't a gorilla. Borland and Novell went up against another gorilla named Microsoft.
Iomega is somewhat like Apple. Apple is a gorilla. The gorilla of the Mac platform but no one cares. People want to own Microsoft. The gorilla of 90% of computers sold today. CD-Rs is become the most dominate form of portable storage and erases the need for Iomega in my opinion. Plus, just look at IOM revenues and earnings. Not gorilla like.
P.S. Could someone tell me which 3 stocks Moore bought recently? They were all pure IP companies i believe. I remember RMBS was one of them.. |
