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

To: LindyBill who wrote (27929)	7/14/2000 12:10:14 PM
From: DownSouth	Respond to of 54805

Lindy, "smug" is not how I feel. I'm about 50% from feeling anywhere near smug. I do feel "better" though.

To: LindyBill who wrote (27929)	7/15/2000 3:57:13 AM
From: Uncle Frank	Read Replies (3) \| Respond to of 54805

One of the long running debates on the Cisco thread centers around the comparison of csco and nt. I posted the following comments over there explaining my preference for Cisco, despite NT's excellent progress in optical networking. The challenge was to use Gorilla gaming concepts but avoid the use of our esoteric definitions. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> That was a very reasonable presentation, John, and gave me pause. It made me question why I have my networking dollars concentrated in Cisco and ignored Nortel, which has performed splendidly. Here's what I came up with: * Cisco has an unusually secure position in the networking sector because of its deep penetration and proprietary software. * All their products integrate easily with one another, which is a huge advantage for a user. Accordingly, they don't need to assume undue risk innovating new technology; they can enter at a later date and still garnish outstanding market share. Consider that no IT manager will be criticized for selecting Cisco. * They have the process for making acquisitions immediately accretive down to a science, and have a work environment and a reward program that allows them to retain key employees afterwards. * Their topline growth has been outstanding for a large cap company, and their earnings are very predictable. This makes them the darling of the mutual funds, institutions, and analysts, who support their price during weak periods. * Based on personal experience, they have high caliber, committed, and focused employees. Due to Cisco's training programs, all of them are keenly aware of the mission, their role in it, and the need for timely execution. * John Chambers. As a result of the above, I see Cisco as an extremely stable investment, and feel comfortable employing the leverage of moderately bullish directional LEAPS. This allows me to achieve outstanding returns in a low risk environment. As far as NT is concerned, they have pulled off some fantastic feats in optical networking. But the bulk of their enterprise is directed towards old economy markets, and they just aren't growing the top line fast enough to capture my interest. I recognize that my preference is influenced to a large degree by my investment window and size of my portfolio. At this stage of my career, I feel it is wise to have a significant percentage of my investments in low risk/reward ratio vehicles. By that standard, Cisco is in a league of its own. But that's jmho. Regards, uf