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

To: Mike Buckley who wrote (35782)	11/30/2000 11:37:21 PM
From: npiwovar	Read Replies (1) \| Respond to of 54805

Mike, Thanks for responding to my post.When reading the RFM, you hear about how Wall Street always undervalues gorillas and you hear how Wall Street underestimates the longevity of their power.Well, maybe last year Wall Street didn't underestimate the value of some gorillas and now it is overcompensating for it.That's why I'm glad you are able to educate us in valuations.That seems like such an important aspect of Gorilla Gaming.Without it how could you know where your investments stand? Look at its share price?That hasn't been a good predictor lately. When do you buy more shares of a gorilla?When you have the money available?A certain amount a month religiously?On the dips? Ha! The techs have been dipping for months.How about when the stock is not overvalued.That sounds good.When is that? Mike, you have said that SEBL is coming down to the correct valuation stage.I haven't seen many remarks like that very often or maybe I've been missing things. How often have we heard on TV and elsewhere that CSCO's market cap is so large that it's not a good buy.That one quarter where they don't beat estimates by a penny and the stock will sink like a rock.What is the correct valuation of Cisco?Does anyone know?It's one of my largest holdings.I feel like a dummy because I don't know if it's overvalued.I, like everyone else, know that they make a hell of a lot of money.Also, how is it that they always beat estimates by a penny? How do they figure out to the penny?Why don't they beat estimates by two cents?Maybe Wall Street would be happier. I guess I'm starting to ramble. Anyway, thanks for all your hard work.Please keep posting about valuations.It helps me with my understanding of what is going on. Neil

To: Mike Buckley who wrote (35782)	12/1/2000 1:15:23 PM
From: slacker711	Respond to of 54805

Absolutely trememendous series of posts on valuation....the entire series should be Cool Post's. Bruce and I have often written in the past year and longer that we believe the authors were dead wrong when they wrote that the market always undervalues a gorilla. I think it was also Bruce who brought to the thread that Moore is now conceding on his list-serv that, indeed, the market can drive prices so high using a price-to-vision ratio that gorillas become overvalued using any other kind of metric on the planet. I need to read more carefully....I didnt realize that you had come to this conclusion. I wrote an earlier post arguing that at certain times (very rare) that it makes sense to sell a Gorilla based on valuation. I view this as sort of the other side of your "blood in the steets" scenario. At times, stocks valuations reach the stratosphere....a "pie in the sky" <g> scenario. At that point, it seems to make sense to reduce risk AND increase your potential returns by moving your money from one gorilla to another. Just as Qualcomm falling to $30 might create special measures to raise cash (beg, borrow, steal!), QCOM at $200 might have triggered special action which violated LTBH. Again....thanks for the illuminating conversation on valuations. Slacker