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

To: Apollo who wrote (12865)	12/16/1999 8:12:00 AM
From: 100cfm	Read Replies (2) \| Respond to of 54805

<<, but I would say that much of their debt is related to the cost of erecting the expensive data centers; I would think that at some point, the cost of starting up slows down, and the data centers will have been paid off>> Apollo, thats the part that realy scares me. data center equipment costs and construction costs are carried as two seperate line items. it seems that they need to add almost a dollar of data center equipment for each additional dollar of revenue ontop of the 40mm of construction in progress costs they are carrying quarter to quarter. one could argue that at some point they will have enough buildings to handle the expansion of data center equipment for a certain time frame until they need to build additional buildings. I assume thats where the projected 7 cents in earnings comes from, the reduction in construction expenses. Lets say that in 2002 their construction expense is cut in half. that would throw 80mm to the bottom line. aprox. 50 cents per share. and lets say they double the 7 cents from the yr before, thats a total of 65 cents, or 104mm. still a very anemic sum for going 3 yrs out and a company with a 15b bil cap in todays dollars and a debt load probably exceeding a billion dollars by then. yes, i would most certainly cast my vote with lindy on this one."it's got to be making a profit" 100

To: Apollo who wrote (12865)	12/16/1999 9:38:00 AM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

>> But goes against those here and on eWorld who don't want to miss the early run-up while capturing market share. I guess that would be the crowd that likes investing in Snow Balls (I won't use the SP label anymore in honor of the wishes of our dear friend and long time contributor, Cha2) as well as Godzillas, Gorillas, and Kings. Do you share the feeling that we are living in Investor's Paradise? It seems that every stock we discuss, be they simian, regal, or SB, doubles in the ensuing two months. But this could change to Investor's Hell at any moment, and we all know what a SB's chances are in Hell. Goeff's message to the thread tried to alert us to the fact that this delightful period won't last forever. It will be critical to your financial health to be in solid companies at some point down the road, so I'm glad the primary focus of g&k continues to be low risk/reward investing. I think I'll hang with Dancelot (always a good idea <g>) and stick with companies that post a profit. uf