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

To: Thomas Mercer-Hursh who wrote (30405)	8/24/2000 2:59:27 PM
From: ratan lal	Read Replies (1) \| Respond to of 54805

I have had *so** many frustrating discussions over the years with people comparing two business* I agree that comparing 2 biz would be like apples and oranges. However, in terms of investment, it may not be a bad idea to see which would be a better or less risky investment. For instance, IMHO, it is better ot have a biz that licenses its technology. That way you get quite a bit of cash up front plus more at regular intervals. You dont have the problems associated with mfg., inventory, ordering, obsolence etc. Thats why many cos. are selling off or spinning off their mfg. ops. Given 2 cos. with the same set of nos., I would rather invest in a co. with IP than mfg. products. Someone may even come up with a ratio that shows what nos. would represent equivalent valuation between the 2 types of cos. Again all jmho.