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: LindyBill who wrote (11795)	12/2/1999 4:59:00 PM
From: Eric Jacobson	Read Replies (1) \| Respond to of 54805

This is way I said earlier that this stock can only act like a gorilla if they dump TV guide. Otherwise, the magazine will be a big drag on earnings. Qualcomm faced the same problem with the infrastructure and Phone divisions. They knew it, and are selling them off for precisely this reason. I agree with these thoughts. I don't fear cannibalizing the print version...it's a low margin, slow growing white elephant. The only thing it's good for is the ever-important name brand recognition which has been established over several decades. Besides, the print version already has been cannibalized by the TV section of most Sunday papers. Converting the print version to a channel/on-line version will provide another venue to increase advertising revenue while reducing production costs. Henry Yuen has built his company based on high margin, low cost licencing of intellectual property. He's no dummy, and I am certain he's already discussed with the TV Guide types how and when to spin off the print version. This will only give a further boost to the share price, which has been doing well even while dragging the print version around like a ball and chain. ...this stock can only* act like a gorilla if they dump TV guide.* G is up 300% YTD, and up about 50% since the TV Guide announcement. Phew! (TVGIA hasn't done too badly, either) If this isn't acting like a gorilla, then I think we've lost all perspective. The only possible explanation for this statement is it is written by someone who's been spoiled rotten by Q! <g>