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

To: Todd Bishop who wrote (36351)	12/10/2000 1:36:57 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Todd, I don't follow Juniper. If you're assessment is right, I've got a couple thoughts in mind. The first is that Juniper management probably subscribes to the manual's tenets and realizes the inevitably hopeless possibility of knocking Cisco off its throne. Given the possible alternatives, it's going for the one that gives it the most control of its own destiny by going after niche markets. My second thought is about valuation. (You knew I'd eventually get around to that! :) Consider the probability that most investors saw the possibility that Juniper would eventually replace Cisco as the Gorilla standing at the top of the mountain. If the market valued Juniper based on that possibility, it probably valued Juniper's CAP more than it deserved. To the extent that the market continues to make that mistake, it will probably occasionally overvalue Juniper. If you're right, the market should instead value Juniper's CAP based on being the dominant chimp in certain markets. In other words, buyer of Juniper's stock beware. --Mike Buckley