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

To: gdichaz who wrote (29230)	8/1/2000 10:40:15 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>> But, to me what was most interesting was on page 82: "...AMD and National Semiconductor ...both have successful cloning efforts under way. These challenge Intel's margin and force it to compete more like a king and less like a gorilla than it would like to...." Goeff doesn't always get it right. Since he wrote the rfm, National has retired from the field of battle, and Monkey AMD has had no measurable impact on Silverback Intel's margins. Examine the following data on Intel's profit margins (source: Wall Street Research Net) for confirmation: TTM 1999 1998 1997 1996 1995 1994 Pft % 29.5 24.9 23.1 27.7 24.7 22.0 19.9 >> All I am suggesting is that there is less of a clear case for the lock Intel has (particularly in the new world of wireless where it has none) than say that of Qualcomm. Since you know I hold qcom dearly, I'm sure you'll understand when I say they are not in Intel's league yet. I think they may be some day, but they will face many tests along the way. >> Is holding Intel now a good idea, or not - if there is no need for the money or a more attractive alternative? IMHO, it's one of the safest bets in high tech, right along with Cisco. But then again, Silverbacks have always been my passion <lol>. uf

To: gdichaz who wrote (29230)	8/2/2000 1:29:12 AM
From: Mike Buckley	Respond to of 54805

Cha2, Your quote from the manual: "These challenge Intel's margin and force it to compete more like a king and less like a gorilla than it would like to...." When someone notices a qualification of a gorilla's strenth, there is sometimes the tendency to think that it ain't a gorilla. Not so. As is the case in all beasts, some gorillas are stronger than others. Some will occasionally catch a cold. But they don't change their DNA! Your words: All I am suggesting is that there is less of a clear case for the lock Intel has ... than say that of Qualcomm. Exactly. That's why I'd be happy to have Qualcomm as the largest holding in my portfolio as it used to be before its market cap dwindled. If Gemstar proves to be what I think it is, I also believe Gemstar's lock is stronger than Intel's. As above, if Gemstar and Qualcomm are stronger gorillas in their own right than Intel, that doesn't render Intel anything other than a gorilla. And by the way, Lindy is just as wrong when he sez Intel isn't a gorilla. But it's okay to be wrong. :) --Mike Buckley