Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Brown who wrote (9933)	11/8/1999 7:06:00 AM
From: LindyBill	Read Replies (2) \| Respond to of 54805

enter into a discussion of where some of our old friends and new friends in the Gorilla Game and Royalty Game are at the moment and what their P/E's reflect. I was in the process of composing a post to Merlin about the momentum players and their possible effect on Q's, and others, price when I read your post. The momentum boys may be able to either control a stock price, or influence a stock price, depending on your point of view. I think, that for the companies of the size we deal with, influence is more likely. The obvious play for the mo-mo boys would be to participate in the run up, sell short when you think it is near the top, and then sell out quickly forcing the price down and starting a panic that will allow a large short profit. These people would have to do this on a "nudge-nudge, wink-wink," basis, if they are working in concert, to get away with it. Lets look at a large company that recently took a dive, AOL, and compare it to QCOM. Qualcomm is a Gorilla that has a toll booth on the wireless highway AOL is a King that owns the Internet portal business Qualcomm has a market cap of 45.92 Billion and a trailing PE of 257 AOL has a market cap of 188.42 Billion and a trailing PE of 447. AOL had, at its top of 166 15/16th on April 5th, a market cap of about 216.26 Billion and a trailing PE of 527. When I look at these numbers, and the comparison, Qualcomm could double again this year and it would still be 1/2 the present market cap, and at the present trailing PE, of AOL. This means, to me, that we can go a long way before we need to worry about an artificial price drop being generated by the mo-mo crowd.