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

To: Thomas Mercer-Hursh who wrote (49269)	11/29/2001 4:33:42 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

>> Isn't this one of the reasons that a software company can be such a short term cash cow by comparison with a hardware company? IMO it's the gross margins. >> If the company has high growth potential, plowing that money back in will still produce high growth, potentially leading to a time when less investment is required. For a growth company, a decline in capex might be a signal that future growth prospects are lessened, and an exit from the stock should be considered. uf