Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: lurqer who wrote (21827)	3/30/2000 11:54:00 PM
From: John Stichnoth	Respond to of 54805

I agree that we can't go too far afield. If we do go into a new area, it is certainly incumbent on us to demonstrate that the sector fits. The two key issues, I believe, are Discontinuous Innovation and the Technology Adoption Life Cycle. If the product category fits those two criteria, then we can investigate either in terms of Gorilla or King criteria. I also agree that it would be cool to be able to find gorillas in the telecosm. But, I am already up to my ears in 200+ PE's. (What a quaint concept, P/E! <g>). Since the telecosm stocks are so popular these days, it's hard to find companies in the sector that come close to satisfying traditional valuation criteria. Therefore, I'm looking in adjacent areas more and more, and viewing Lynchian ideas, like Growth at a Reasonable Price, as relevant. That has led me to Meade Instruments a couple of weeks ago (thank God, since it's my biggest gainer this week), and In Focus this week. [Note: I did not nominate Meade in Project Hunt, even though they are the leader in their market, with a dominant position, and it is a technology field. The market has to be big enough to hold a King or Gorilla, and telescopes isn't a big enough market.] Best, John

To: lurqer who wrote (21827)	3/31/2000 9:54:00 PM
From: lurqer	Respond to of 54805

*O.T.* re. Biotech and GG Having already made my comment regarding the applicability of GG techniques in: Message 13319339 I would like second Cha2's caution that we exercise care in excluding categories for some "canonical" reasons. We live in an innovative, fluid environment and it would be best to keep an open and nimble mind as to what the future holds. That said there are only so many hours in the day and so many posts that can be reviewed. A thread that has no focus is usually worthless. So while we should allow some venturing into strange lands (particularly on weekends), the guides on these field trips had best wear their flak jackets and be prepared to defend their use of our time. Three years ago, based upon my Dillinger Principle (of going where the money is), I investigated Biotech and came away appalled. Typically with a few dozen employees, the company was in a desperate race against time (money burn time) to hit a jackpot. Some would make it, but even the "pros" seem very poor in picking the eventual winners. I eventually chose a couple of long term IPR plays - HGSI and INCY. Both of these have had a recent interesting run to say the least. But I don't now nor have I ever viewed them as having anything to do with the GG. They are more like baboons - a lot of noise (hype) scampering around (and up and down) but no 800 hundred pounders here. I am happy with my two prize mandrills though. lurking... lurqer