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

To: 100cfm who wrote (44727)	7/20/2001 7:58:14 AM
From: Wyätt Gwyön	Respond to of 54805

The market doesn't give a damn whether a stock is a Gorilla or not i think there's only one real gorilla: MSFT. the market has exposed the weaknesses of the other biggies--INTC, CSCO, etc. i guess another name for real gorilla might be MONOPOLY, a concept that has been considered an attractive business model since way back when. it seems in the high tech world, monopolies don't come easy, and they don't come cheap.

To: 100cfm who wrote (44727)	7/20/2001 10:48:31 AM
From: slacker711	Respond to of 54805

The market doesn't give a damn whether a stock is a Gorilla or not. If the growth rate going forward doesn't support the current PE, the stock will be taken down, simple as that. The market will not say "OH SBL is a Gorilla" therefore lets not trade it's shares down. The market may not attention to the word Gorilla....but it will pay a premium for companies which have defensible markets. This does not mean that these stocks wont go down...but it usually means that you can pay a greater PE for that stock than for others. How much more depends on your comfort level with the risk.... Also why would second guess such a great management team, They have stated 12% growth going forward. You should base your assumptions on what they tell you. Isn't the great management team part of the reason of owning the company in the first place. The management teams may be great....but what growth were they predicting last year? You need to have some idea of the market potential of the companies in which you invest. The growth rates of last year may have been too high....but it is equally true that the growth rates that are currently predicted may be too low. Slacker