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: rudyprins who wrote (23620)	4/26/2000 3:12:00 PM
From: Bruce Brown	Read Replies (1) \| Respond to of 54805

RE: RB definition For those of you that don't know, an RB stands for one of the Fool's portfolios - Rule Breaker. There is also a Rule Maker portfolio which has Microsoft, Cisco, Intel, JDS Uniphase, Yahoo! and Nokia as well as others residing in it. The Rule Breaker has eBay, Amazon, AOL, Amgen, Starbucks, Celera and @Home residing in it and is a very high risk portfolio. It is advertised as a high risk portfolio and plenty of 'warnings' about it are made clear. A lot of debate recently as how Fools ignored those risks and piled into the most risky investment that portfolio has made to date - Celera. Before that, eBay was the investment with the highest risk in the portfolio. Plenty of 'bears' hang out on the Rule Breaker board to warn those willing to adventure out into a Rule Breaker investment or two to complete the speculative portion of their portfolios. Rudy and I were participants of a seminar last year on applying criteria to a growth stocks using 5 specific criteria. 1. Sales growth in excess of 15% over the previous year. 2. Gross margins holding steady or rising and above 50%. 3. Cash savings that amount to 5 times more than long-term debt. 4. Inventory that is growing no faster than sales over the past year. 5. Receivables that are not growing faster than sales over the past year. Off the top of my head, some stocks that pass the criteria and have in the past include Schwab, eBay, E*Trade, Microsoft among many others. Many of our gorillas would not pass, but we are using different yardsticks to measure the gorilla game. Rudy and I helped with the recent Rule Breaker seminar which had 20,000 participants drooling for some 'hot tips'. Of those 20,000, I don't know how many have the tolerance to own a Rule Breaker or two in their portfolios and would do well to own a few Rule Makers as well (at least the gorillas and King JDSU). It could even be that the seminar actually taught many that a Rule Breaker investment was not for them. Thread bloat over and out. BB