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

To: JHP who wrote (45052)	7/31/2001 8:16:28 PM
From: tinkershaw	Read Replies (1) \| Respond to of 54805

this is actually the case! as competitors saw EMC fat profit margins they jumped into storage and to compete they offered their products cheaper to undercut EMC. and as you say the cluster f*ck started! Yeah, I guess that decade + of enormous growth and enormous margins was just a fluke. Same goes for INTC, CSCO, ORCL, MSFT, SAP. Enormous margins, shouldn't everyone be entering those markets and returning economic rents to zero? Yes, in a market with low barriers to entry, low switching costs, high substitutability. On the gorilla board we look for the antithesis to those commodity markets. Companies whom by control of the technological architectural create these enormous sustainable advantages so that economic rents cannot be brought to zero. EMC, to my knowledge, has never been considered anything more than a royalty play caught up in a data tornado. When the tornado ends royalty gets shot. This is one of key rules in gorilla gaming. Hold the enabling gorilla til the cows come home (with the now added corrollary until a recession is upon us as Moore seems to be indicating, then move to cash), but hold royalty lightly and sell at the first sign of the tornado coming to an end. Quite obviously the data tornado (at least for now) has come to a stifling end. By the rules of the game, EMC should have been sold at the first signs of this occurrence (probably at a minimum at EMC's first earnings warning). So in continuation of the prior post, it really is not necessary to know the details of the competitors products, there are other tools to fathom them out and determine their effects on the markets. Tinker