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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Stock Farmer who wrote (43585)6/17/2001 1:26:09 PM
From: Thomas Mercer-Hursh  Read Replies (1) of 54805
 
the company will grow proportionately at some average rate (G) so that all key ratios will be preserved. Gross margins, net margins, inventory, accounts receivable and so on.

Isn't this a rather questionable assumption for a high tech company, particularly one undergoing tornado growth? Many technologies have a lot of heavy front loaded costs and an established gorilla can enjoy margins which it is unlikely to get prior to becoming established.
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