RE: momentum, everyone seems to be on my wavelength, Its a term that has no right on wrong definition. I use it, as I think most do, to define a stock that I believe is being drive up by a "bandwagon" , In addition to its worth. Others my disagree with me on any stock, it really is a personal opinion. I find it useful in defining co's that, if I hold them, I will "bail" on any bad news, because I believe it will really dive.
RE: Gorilla co's, I define a Gorilla as:
1: It has a monopoly in its industry
2: The switching cost is very high.
I define a King as:
1: It is dominating its sector
2. low switching cost.
So Msft, Csco, Sap, and Intel are Gorilla's and Dell, Lucent, and AOL are kings. You can argue the difference between monopoly and dominance on these co's, but the switching cost is the key to this definition. Why bother to split it out? I think it's a terrific tool for buying, holding, and folding decisions. I know I am responsible for a lot of book sales to people who read this thread, and all I can say to those who haven't read it, is try it before you reject these concepts. They have sure helped my decisions the last three months, and I believe I have made a lot more money because of the book. Hey, smile everybody, we had a good day on SAP, and I am grinning from ear to ear, my portfolio is up 56% this year!
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