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

To: John Stichnoth who wrote (21741)	3/30/2000 12:06:00 AM
From: Mike Buckley	Respond to of 54805

Because of the learning experience I've had in this folder in the past year, it took me about ten minutes to make an investment decision tonite. Today I received an e-mail from my brokerage firm offering me the opportunity to buy shares at the second public offering price. Having glanced at the prospectus, I was able to glean that: 1) The company has no lock; 2) The company probably has very low switching costs; 3) Though the recent growth in revenue has been tornado-like selling testing systems to the fiber optics users, in the last two years the gross margins have dropped about 17% and the more product the company sells the substantially less operating cash flow it generates; 4) Of the shares being added to the public market, about 70% of them are being offered by insiders. 5) The PSR is 240. I doubt there are many regular followers of this folder who know what my decision is. :) Thanks to all who participate in this folder for helping me develop the skills that make that decision so easy. --Mike Buckley

To: John Stichnoth who wrote (21741)	3/30/2000 7:53:00 AM
From: Apollo	Respond to of 54805

With the huge run-up in tech prices, and the shift to a P/V ratio somehow defining value, I've come in recent weeks to conclude we're reaching too far on some of our Gorilla-candidates. I frankly cannot distinguish "P/V stocks" from "Story stocks"--and the latter has in my eyes been thoroughly discredited--from personal experience Mine too. <g> John, that was refreshingly sound and sensible. I agree entirely. It's been part of my frustration in wanting to get in on some of these fine companies, which are already in orbit by the time I decide to do so. Stan