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

To: gdichaz who wrote (47955)	10/16/2001 12:27:36 AM
From: Thomas Mercer-Hursh	Respond to of 54805

valuation is an excuse to miss the real opportunities that stare us in the face This is, of course, one of the tests that a valuation technique must pass. It is one thing for it to give wise counsel on when to get out, but that is all for nought if one is never allowed to get in.

To: gdichaz who wrote (47955)	10/16/2001 1:12:11 AM
From: techreports	Respond to of 54805

And since we focus on gorillas here, note that Qualcomm has all that is necessary now for mobile data wireless - others do not. What does Qualcomm have that others do not? I don't believe Qualcomm is a gorilla. The Qualcomm situation is unique. It would be similar to say Microsoft having patents on the GUI and getting royalties from every other OS that used a GUI, but no one company controls or dictates the Windows APIs. Imagine if every operating system could run all the same applications, expect Microsoft receives a royalty from everyone. If that was the case, I think Microsoft's gorilla power would be weakened. Not sure if that's a good example (someone else want to give it a better shot?), plus Qualcomm does have CDMA2000 which it appears they have a gorilla control over (i'm expect CDMA2000 to get 15% of the market - nice little cash cow). Microsoft, Intel, Coke and probably many other companies have used their huge cash cows to kill off competition. Qualcomm could do the same with the profits from CDMA royalties and CDMA2000 ASIC sales.

To: gdichaz who wrote (47955)	10/16/2001 12:43:55 PM
From: Pirah Naman	Read Replies (1) \| Respond to of 54805

Chaz: "valuation" was a reason for inaction when action was needed ... valuation is an excuse to miss the real opportunities that stare us in the face... Will you be surprised that I disagree with that? I'll bet you will be even more surprised when I agree with that! Yes, some methods of valuation and pricing definitely will cause one to miss opportunities. As will some qualitative methods; in fact, the TFM explicitly states that following its tenets will cause the reader to miss out on some opportunities. Every method has its weaknesses. However, not all valuation methods are alike, just as not all networking companies are alike. Because one tool does not meet the needs of a user does not mean that all other tools are similarly useless. the sin qua non for investing is looking ahead not back. True, and this in no way contraindicates the use of valuation. Some valuation tools perhaps, but again, not all tools work the same. Some can use valuation tools as a test to see whether the qualitative life changes they foresee have an adequate quantitative reward; ie., to identify the magnitude of the opportunity. After all, the automobile, the airplane, and the television were all major transformers... I for one greatly appreciate your updates and input on QCOM. - Pirah