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

To: chaz who wrote (13792)	1/1/2000 8:08:00 PM
From: JRH	Read Replies (5) \| Respond to of 54805

Happy Y2K everyone! I have been thinking about whether CMGI and other VC companies really belong on the W&W portfolio. Of course there is no chance of being a gorilla in this business (as they provide services and don't have any locks on technology). So, if anything, it would be a royalty game. But how does one measure a VC firm's market share? Does the thread have any thoughts on the removal of VC firms from the list? Regarding PSFT, for the same reason that ARMHY doesn't belong on the GKI only because of its stock's yearly performance, PSFT shouldn't be removed only because the stock hasn't performed well this year. If you'd like to make a case for its removal based on fundamentals, lets's hear it :) !! Regarding IDC, I don't know much about the company. If you'd like to make the case for its inclusion, I'm all ears! Yes, I am still bitter about FranQ stealing QCOM from my list, but it's inclusion in the GKI meant an inclusion in my real portfolio <g>! That's where the Q belongs, anyway!! Thanks for the constructive feedback!! Justin

To: chaz who wrote (13792)	1/1/2000 9:04:00 PM
From: Mike Buckley	Read Replies (4) \| Respond to of 54805

Chaz, I also question the inclusion of PSFT. Mike B (I think) would place it on the G&K list... You remember accurately. Apparently you have fully recovered from the New Year's Eve celebrations. :) I'd like to take a moment to clarify my thinking about PeopleSoft. I think it would be very difficult to present a viable argument making the case that PeopleSoft is not the Gorilla in the human resources automation market. Once we accept that it is the Gorilla, we then need to examine its success in the CRM market. If Siebel is the Gorilla there (not my opinion), we know the possibility of PeopleSoft displacing Siebel is far less than slim. If you believe as I do that it is still too early to proclaim Siebel the Gorilla, one still has to wonder what chance PeopleSoft with far less CRM revenue has of becoming the Gorilla. Again, not a chance in my mind. We also have to look at PeopleSoft's role in the ERP market where SAP has been the Gorilla for quite awhile. PeopleSoft has less chance of becoming the Gorilla in that market than in the CRM market due to SAP's strength. The investor who agrees with all of that needs to ask one critical question about PeolpeSoft: does the company's weakness in the CRM and ERP markets dilute its appeal as the Gorilla in the HR automation market? Because I get a little hazy about the exact purpose of the G&K index, I'm not sure if this information, ummm opinion, helps make the decision about whether or not to include it in the index. --Mike Buckley