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

To: Bridge Player who wrote (21519)	3/27/2000 4:08:00 PM
From: TigerPaw	Respond to of 54805

Is there ANY market price I can say I never bought any Berkshire Hathaway until they had class B shares. (I know it's not a Gorilla, but the point is the price here). Price was the reason I didn't buy, it didn't matter that until a year or two ago they were on a big roll, I couldn't afford to have them, and anything else. In the same vein, if there is a Gorilla that is hugely expensive, and another with equal potential that is cheaper I would opt for the cheaper one. Why? because I could adjust my holdings in finer increments. If I need to sell $10,000 to pay my taxes I would rather sell about $10,000 of something and not sell a $50,000 share and generate even more taxes. Finally if all the Gorillas get real real expensive, well then what is the alternative? You can't play the game if you don't buy a ticket and so far there isn't a better game than the stock market in general, and large cap Gorilla stocks in particular. TP

To: Bridge Player who wrote (21519)	3/27/2000 4:40:00 PM
From: surpow	Respond to of 54805

1. Is there ANY market price at which you would feel that this company no longer warranted a sell-put/buy-call-or-leap strategy Lets use QCOM as an example. The strategy you are inquiring about is a little different then the GG even though some of the most respected thread elders use the buying of leaps as part of a LTB+H strategy. Because of the time and intrinsic premiums involved when you deal with the purchase of leaps, or the selling of puts, recent moves in the stock price become as important as the fundamentals of the company. For example, on 1/3/00, QCOM had bumped to intraday of 200 and closed around 175. This was primarily due to the over-reaction of "weak" hands chasing a zealous price target set by PW. At the time, I was 100% Q options, all deep in the money. Trying to maximize return on investment, and having tons of faith in the Q, I was eager to roll those positions up and out. So on 1/3/00, I pulled the trigger and proceeded to get my butt kicked all over the place. It is easy to look in the rear view mirror and say "duh", but in this particular instance it was so obvious. Experience is the best teacher. If the answer is no, are you relying on technical analysis of some kind to provide adequate warning of risk and/or a major change in investor psychology? Yes, but TA is a very finicky tool. If so, how would you differentiate this from a 10-20% correction that in the recent past has been hailed as an opportunity to sell even more puts? I am beginning to recognize this as what I call "Obvious Excessiveness". OE is much more case specific then the generalities of market corrections, and understands that it doesn't happen all of the time and that it certainly is not part of the GG. Two examples include: the decline in COMS post PALM spin off, the decline in QCOM post PW recommendation. I mentioned that I am a novice investor, so my OE study is relatively new. My current OE candidate is RMBS, although I only see down side to 300 or so. I am wondering what the gorilla and king optioneers think. Actually there is a better SI forum to find that out. It is called Options on Gorilla and Kings. Noah

To: Bridge Player who wrote (21519)	3/27/2000 6:57:00 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

>> [Posted on the Gorilla and King Portfolio board; reposted here to obtain broader exposure] But this is the Gorilla and King Portfolio board <gg>. I think you meant to say the Gorilla and King Options board. Some of us here are horrible at timing, as Dancelot and I have proven on numerous occasions, and will not try to time a certified Gorilla. I have not established price targets for my holdings, but rather look at changes in my Gorillas' fundamentals to assess their potential to make additional contributions to my portfolio's bottom line. uf