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

To: LindyBill who wrote (10684)	11/19/1999 12:18:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>> People, you have to get out from in front of your monitors and go DO something. You mean pushing <refresh> on qcom's real time quote doesn't qualify as doing something? Have a great time with the grandkids, Bill. I'll keep an eye on your fortune while you're dancing <g>. uf

To: LindyBill who wrote (10684)	11/19/1999 12:46:00 PM
From: pompsander	Respond to of 54805

I am going to open the door of discussion on a Price with Attitude who I believe is rapidly becoming a King. While this company cannot ever attain Gorilla status for lots of reasons discussed in the Manual, it is an intriguing situation for more cautious investors. In laying this argument out, I know there are many who may scoff (scoff, scoff), but I ask you to think it through. Now, having said all that, there is also no way this firm should be on the high end of the investment list, but, just to stir a little discussion, I ask all to think about it. The company is our old friend, United Parcel Service. UPS. The negatives are many...only ten percent of the stock is in public hands, it is not a technology company, in which dramatic leaps in process can yield geometric returns. It is a "bricks and morter" kind of firm, with high labor costs and those darn trucks and planes. However, on the plus side....this is a company with a clear mission. They have addressed the labor cost issue at least through 2002 through their labor agreement with the Teamsters. They are the only true international package delivery company, and expanding rapidly in that area. They are excellent users of technology, improving their processes and margins accordingly. They are positioning themselves to be the only reasonable solution if the e-commerce explosion becomes entrenched and global in nature. Cases in point: 1. UPS presently handles between 50 and 75% of e-commerce shipments (depending on your definitions on what constitutes such commerce. 2. They are adjusting their corporate relationships and pricing practices with large shippers to achieve both exclusivity and higher margins. 3. UPS is the only delivery firm (other than U.S. mail) which will deliver anywhere --a big plus for the underlying concept of e-commerce, which is that the store is unimportant whether you live in Bumdiddle Montana or New York City. 4. Package tracking integrated with on-line purchase allows a complete shopping experience...and reliabiity. I personally believe this firm is positioning itself to achieve King status very soon. While not a direct technology play, it is one on an indirect basis. As a safe, less volatile, addition to a portfolio, it has some appeal. And, as e-commerce grows worldwide UPS will benefit directly. Revenues can easily double in a short period of time, and margins improve. Finally, what is the other option? Someone has to deliver the items purchased on-line. Quick, safe, inexpensive delivery is essential to the success of the concept. With reliability and dominance will come even more pricing power. Now, I know there are some good arguments why a package delivery company does not fit the definitions utilized in the thread and, of course, in the FM, but it is interesting to look at non-tech firms under the spotlight the thread shines. Just for fun.

To: LindyBill who wrote (10684)	11/19/1999 2:04:00 PM
From: Tlac	Read Replies (1) \| Respond to of 54805

..get out from in front of your monitors and go DO something. ok,ok, going for another cup of coffee right now... Kelly

To: LindyBill who wrote (10684)	11/21/1999 10:16:00 PM
From: Greg Hull	Read Replies (1) \| Respond to of 54805

Sir Dancelot, <<I know when I come back that there will be about 250 posts on this thread over the weekend>> Look's like a pretty good estimate by the time you check in Monday morning. This thread is an example of a positive feedback system. A few of you started this thread and made it useful. This attracted some more posters, who told their other threadmates. A few of us former lurkers start posting and once we start we can't stop. I had the thought during my 10 week reading period that this initiation was just another form of hazing. Would I be instructed to post like mad once Hell Week was over, just to add to the load for the next plebe? (to the rest of you struggling to catch up with past postings - sorry I've been sworn to secrecy) Ah, the curse of the useful thread. It's just going to keep attracting more people. You better start taking a group of G&K posters to dance camp each weekend before we reach 500 posts per weekend. Greg