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

To: blankmind who wrote (48784)	11/11/2001 11:55:23 AM
From: Eric L	Read Replies (1) \| Respond to of 54805

blankmind, << my "gorilla" pick - which meets all the criteria except the $10 bill market cap ($5 bill now) due to stock buyback & stock price drop: HEALTHSOUTH Corporation (HRC) >> HRC fails to meet a few other "gorilla" criteria. - First and foremost it is not a tech stock and "The Gorilla Game" is an investment theory applicable to techs not specialized health services, so: -- no discontinuous innovation -- no proprietary open architecture -- etc, etc. Probably a fine investment, but outside of the scope of discussion here and one would have to really stretch to apply "The Gorilla Game" to HRC. - Eric -

To: blankmind who wrote (48784)	11/11/2001 2:03:07 PM
From: Apollo	Read Replies (1) \| Respond to of 54805

HEALTHSOUTH Corporation (HRC) Dear Blankmind (interesting name), HRC doesn't strike me as a gorilla, for a number of reasons. 1. Barrier to entry........anyone can and has enter the outpatient surgery and rehab field; no barrier to entry 2. There's no barrier, in part, because there is no proprietary architecture or IPR that is unique. Outpatient surgery requires skilled providers, equipment and infrastructure, and contracts. Theoretically, anybody can do this. 3. Switching costs; there is no high price for the consumer or insurer to switch to another provider of these services. 4. We actually discussed, in Jan 2000, the biotech field, and I weighed in, then, as medical scientist and academic physician, with my disenchantment with Health care as a growth investment vehicle. Way too much government interference in the natural flow of business and free enterprise, and the overall cost of medicine being so expensive, and all of the overriding concerns related providing health care to the citizenry. 5. The Gorilla Game was a reference text to Hi Tech. Whether its tenets are extrapolatable to non-Hi tech segments has not been tested, and may possibly not be valid. Alternatively, you may be right, that they can be used elsewhere besides Hi Tech, but this view is unproven too. BTW, Walmart is a powerful company in its industry, but isn't its competitive advantage chiefly due to its purchasing power and excellent management? These are important considerations, but do not fulfill the definition of "Gorilla", as described in TFM. Finally, 2 things: 1. Given your question, I take it you haven't read the field manual, as required to participate on this thread in any meaningful way, and 2. Eric and I have generously responded to your question. In truth, and without being rude, we historically don't respond directly to these types of questions, but have instead asked the questioner to put forward, in writing, their own compelling argument as to why a company like HRC is a gorilla. OK, Blankmind, why do you believe HRC is a gorilla, using the terms and methods described by Geoffrey Moore and associates? Apollo