Gorilla and King Portfolio Candidates Message Board

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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Eric L who wrote (36630)	12/14/2000 1:13:57 PM
From: Michael H	Read Replies (2) of 54805

I believe Futrelle is pointing on couple of things: (1) Be careful when crowning a gorilla (namely Intel ;-) (2) Check if the market is ready for the gorilla candidate products. If it is not, none of the baby gorillas will make it because there is no food around (remember compelling reasons to buy?). There is a lot of talk about hunting gorillas, but very little about GAP and CAPs. (3) The assumption that any valuation for a Gorilla is right any higher valuation is even more right - this is wrong. Even a Gorilla can be overvalued. As a matter of fact - I prefer some Kings. When a market is growing with 60%/year, the King just has to maintain its marketshare to grow its stock price by 60%. If growth falls short to 40%, the stock should still grow near to 40% because it has not been valued by P/E of 200, but by 20-30. When a gorilla falls short of expectations, maybe a monkey is rising, maybe market is slowing, maybe new product is not accepted, new technology is coming, down you go. Look at TRFM P. 121). Kings are lower risk sometimes - IMHO. Maybe we should look for King-Kongs (better name for the hybrid (Godzilla)). Michael

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