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

To: Uncle Frank who wrote (11710)	12/1/1999 10:20:00 PM
From: mauser96	Read Replies (1) \| Respond to of 54805

From the"invest in haste, repent at leisure" file--- The Bull Market Report has mentioned CDMA technology at times in their reports. Apparently lots of customers went out and bought shares in Cedema Corp.,(ticker symbol CDMA) selling for 6 cents a share. Some of them probably still haven't figured it out <<gg>>

To: Uncle Frank who wrote (11710)	12/1/1999 10:30:00 PM
From: Jill	Read Replies (2) \| Respond to of 54805

Frank, we're going to call it "Options Trading on Gorillas and Kings", thus indicating that Options is the subject, but for people who have core positions in G&K stocks. It won't start immediately, as we're going to search for at least two other veteran options traders and the four of us will start the thread (in the header) and let it be an open forum, without one particular leader. So I would say it will be up in about a month or so. No rush as it should be started properly. And I won't take up any more thread space on it. My apologies. On another note, here's a piece on CSCO that aired mid afternoon--I hope it hasn't been posted already, I haven't had time to read all the posts today: Cisco to keep buying, despite rising prices By Ben Heskett Staff Writer, CNET News.com December 1, 1999, 3:50 p.m. PT SANTA CLARA, Calif.--Networking equipment leader Cisco Systems plans to stick to its acquisitive strategy over the next year, but is wary of the rising valuations of start-ups in the nascent market for Internet-based optical equipment. Despite the lofty valuations given to a number of new entrants in the networking equipment and software markets, chief executive John Chambers says the company plans to buy 20 to 25 companies over the next year. In the past, Cisco has counted on start-ups to fill holes in its technological portfolio. Of particular interest to many in the networking industry is technology that improves the capacity and performance of fiber-optic networks, but isn't overly expensive. Quote Snapshot CSCO 91.44 +2.25 RBAK 143.12 +3.19 SCMR 219.38 -2.62 Enter symbol: ú Symbol Lookup More from CNET Investor Quotes delayed 20+ minutes But the cost of such a strategy, however, has risen considerably, given the recent success of upstart networking companies such as Juniper Networks, Foundry Networks and Sycamore Networks. The values associated with the sector can be best exemplified by Cisco's recent purchase of Cerent for nearly $7 billion, despite the start-up claiming only $10 million in revenue. This week's $4.5 billion deal between Redback Networks and Siara Systems--a firm that as yet has no products and no revenue--only furthers the concern that the cost of mergers and acquisitions has spiraled out of control. Analysts believe that Cisco has its acquisitive eye on firms that make equipment to expand long-distance fiber-optic network capacity--a technique called wave division multiplexing (WDM). But company executives say demand for such gear still has yet to sweep the market, thus giving Cisco time to survey the field for the right company fit. Cisco does have a large presence in long-distance routing, however, through sales of its GSR 12000 product. "We don't need WDM, we would like WDM," said Don Listwin, executive vice president for Cisco, during comments made to financial and industry analysts at the company's annual strategy update here. "In the next 12 months, we have to figure out what we're going to do." In the past, Cisco was though to be interested in WDM provider Ciena. The company also was reportedly looking at taking a stake in Italtel, a European WDM provider. Yet the costs of such hypothetical deals are still a concern. "It would be easier to make decisions if there were rational evaluations," Listwin said. Despite Cisco's Cerent deal, Listwin said the firm will be unwilling to pay such lofty prices for technology going forward. "We won't be lured into doing something irrational at this point," he said. Regardless of high prices, CEO Chambers said Cisco will continue to grow through acquisitions. "At the present time, our strategy will not change," he said. Chambers said his company's good reputation in the industry and role as a "white knight" allows it to evaluate a variety of companies as they grow their businesses. "We get an opportunity to buy almost every company that comes up," he said. Separately, Chambers also reiterated comments he made at the close of the company's last quarter concerning the impact of year 2000-related issues. He called the fiscal impact of the much-hyped millennium bug a "one-quarter phenomenon" and said the success of the company over the next two to three years will be based on execution, not technology issues.

To: Uncle Frank who wrote (11710)	12/1/1999 10:47:00 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Actually, Poet, characterizing a thread devoted to derivatives as an auxilliary to G&K is inappropriate, as the approach is on the opposite end of the spectrum from our low risk ltb&h approach. I disagree. Buying LEAPS that expire 2 1/2 years out with the intention of rolling them over for another 2 1/2 years and doing it again for another 2 1/2 years is a long-term strategy in my mind, at least to the point of it not being on the opposite end of the spectrum. And I also don't agree that Kings are necessarily LTB&Hs, considering how quickly they can hit the brick wall. I actually like the idea of including a reference to G&K in the title because it narrows it down to the strategies that might be especially applicable to gorillas and kings (or maybe potential gorillas). I'd like to see a relationship as in sister folders be developed so that people who want to discuss the G&K fundies will be referenced here and those who want to discuss shorter-term strategies pertinent to G&Ks be referenced there. As always, just my opinion. --Mike Buckley