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

To: Jacob Snyder who wrote (50541)	2/27/2002 11:59:13 PM
From: Skeet Shipman	Respond to of 54805

Back in the go go days of high investment in IT equipment, high growth earnings and pay anything for stock prices, companys' boards of directors not only OKed bad investments but kept splitting their stock excessively. Now these companies not only face significant reduced revenues, but an excessive number of shares and options. Due to this and the increased competition and reduced margins it is impossible to predict these companies' stocks will ultimately ever sell for more than $5.

To: Jacob Snyder who wrote (50541)	2/28/2002 3:58:12 PM
From: Sam Citron	Respond to of 54805

Jacob, The reason I asked about your CSCO buying habits is that CSCO is not included on your current "favorite stock" list with: QCOM, CMH, NTAP, EMC, CCL, AMAT, TXN. I must have missed your earlier post with the CSCO buy plan. I am curious, when you initiate such a scale-down buying plan, do you have any fail-safe exit plan? How far down will you continue to support it? I know that you are not a big fan of diversification and that you have had some success in "blood in the streets" investing. Your upside targets do look rather modest compared to the potential downside risk. I agree that the AT&T monopoly culture legacy is a challenge for LU. The baby bells share some of these same problems but at least have recurring revenue streams. I believe, however, that LU will gradually adapt and thrive. I don't think CSCO will turn them into toast. CSCO does not have such legacy cultural problems because it is a relatively new company that grew up in an internet boom that was partially a result of its innovative routers. However, I think it is far more vulnerable to Enronitis due to the acquisition binge and the obvious conflicts of interest. LU has developed more of its technology internally through Bell Labs R&D. CSCO depends more on the currency of its relatively high stock price to allow it to buy instead of build. If CSCO goes much lower, however, that strategy may no longer remain viable IMO. BTW, INWN= If Not, Why Not? Sam