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To: unclewest who wrote (17835)	2/13/2000 12:08:00 PM
From: Uncle Frank	Respond to of 54805

>> several of us do believe that gmst's growth will be exponential and geometrical....whatever that means It means a lot of wealth creation in which, thanks to you and Merlin, most of the G&K gang will have a share. uf

To: unclewest who wrote (17835)	2/13/2000 6:37:00 PM
From: Percival 917	Read Replies (1) \| Respond to of 54805

Thanks unclewest, All I can say is to echo UnGle FranQ's comment: It means a lot of wealth creation in which, thanks to you and Merlin, most of the G&K gang will have a share. I might add that after GMST and CREE what are you going to do for an encore? You are going to have your work cut out to top these two.<vbg> Thanks, Joel

To: unclewest who wrote (17835)	2/13/2000 9:18:00 PM
From: Mathemagician	Respond to of 54805

several of us do believe that gmst's growth will be exponential and geometrical....whatever that means Well, this looks like a case for Mathemagician! There are, in essence, two types of growth: Arithmetic and Geometric. Geometric is sometimes (quite correctly) referred to as Exponential. Here's the difference. 1. Arithmetic - Arithmetic growth comes from adding a fixed quantity after each fixed unit of time passes. 2. Geometric - Geometric growth comes from multiplying a fixed quantity after each fixed unit of time passes. Let's compare. Pretend GMST is starting with $0 revenues. The first column will contain the quarterly revenues if GMST experiences arithmetic growth with a growth rate of $2 million per quarter. The second will contain the quarterly revenues if GMST experiences geometric growth with a growth rate of $2 million per quarter. In parentheses is the quarterly percent growth in each case. In Millions Quarter Arithmetic Geometric 0 0(0%) 0(0%) 1 2(infinite%) 2(infinite%) 2 4(100%) 4(100%) 3 6(50%) 8(100%) 4 8(33%) 16(100%) 5 10(25%) 32(100%) 6 12(20%) 64(100%) 7 14(17%) 128(100%) 8 16(14%) 256(100%) 9 18(13%) 512(100%) 10 20(11%) 1024(100%) After 10 quarters of arithmetic growth, a $1000 investment becomes $20,000. After 10 quarters of geometric growth, the same amount becomes $1,000,000. Guess which type of growth we prefer? This also illustrates the advantage of long term investing. Sell after 5 quarters and you have not missed half (50%) of the growth, but 97% of the growth. (Incidentally, change quarters to years and you have Cisco's growth.) M