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

To: Mike Buckley who wrote (25771)	6/3/2000 4:23:00 PM
From: Eric L	Read Replies (1) \| Respond to of 54805

Mike, Re: The Gorilla CISCO << I'll never pretend to fuilly understand an organization as complex and rapidly changing as Cisco >> I gave up a long time ago. How about the "good news" buried in the Tuesday May 23, 2000, downgrade of Cisco, that speaks to its Gorilla nature. personalwealth.com Standard & Poor's downgraded its recommendation on shares of Cisco Systems (Nasdaq: CSCO) to 4 STARS (accumulate) from 5 STARS (buy). S&P Technology analyst Megan Graham-Hackett says the downgrade is not based on the company's fundamentals, which remain among the healthiest in the technology group. But given an increasingly skittish market in the midst of a rising interest rate environment, CSCO's valuation will likely remain under pressure. Graham-Hackett says that investors should note, however, that with revenue growth in excess of 50%, gross margin at around 64%, and cash from operations of $500 million per month being generated, Cisco's solid fundamentals should enable the company to outperform as the market's volatility eases. When this downgrade was made CSCO was trading at 51. It closed yesterday at 64 3/8. Love them Gorilla's. - Eric -

To: Mike Buckley who wrote (25771)	6/3/2000 4:26:00 PM
From: John Stichnoth	Respond to of 54805

Of course you may. (Retirees are allowed such liberties.) :o) Congratulations, by the way. Terrific. On your points: I agree, and I'd add that the need for following true Gorillas closely is much less than for the pretenders. I don't even follow Intel, for instance. The stock just sits there, out of the way. And meanwhile is almost my best performer this year. (Now, if we could get the Q to behave! . . .) Much of the issue for me is purely psychological. I know that I buy and sell more than I really should. But, each time I act, it seems to be the right thing to do. That's probably at least partly because I'm dealing with non-Gorillas. All of my Gorillas/Kings I have basically had for years, neither increasing nor decreasing my stake (the one exception being Seibel--I couldn't resist taking some profit on the runup in March). And, they've gradually become a greater and greater portion of my total. Hmm. . . I think there may be a lesson there. Best, JS