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

To: sditto who wrote (30571)	8/27/2000 11:26:51 PM
From: Seeker of Truth	Read Replies (1) \| Respond to of 54805

Typically looking for ... net margins > 15%. Only two gorillas don't meet this. CSCO, 14.1% and SEBL, consistently < 15% and in the most recent quarter about 12%. I presume that CSCO's profit margin will decline very gradually; considerable growth of profits remains. As for SEBL, maybe they are trying to make sure nobody else grabs their market so they are looking to expand sales even more than increasing profits. They don't have a cash demanding business. So your flexible word "typically" allows us to hold SEBL happily and tightly. A stock that violated two of your criteria probably wouldn't be acceptable in comparison to other gorillas.

To: sditto who wrote (30571)	8/28/2000 8:14:47 AM
From: MARK BARGER	Respond to of 54805

sditto, re: your investment parameters. Cree weighs in above the mark in all of your catagories except not having $1 bil. revenue, which is probably 3-4 years away. Net margins easily in the %30+ range. People still can't figure out exactly what Cree does. When they announce (hopefully real soon!) large contracts for their RF devices, they will be viewed as more than just an LED manufacturer. "Benjamin, the future is in silicon carbide" MB