Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jacob Snyder who wrote (51190)	5/1/2002 4:53:52 PM
From: paul_philp	Respond to of 54805

Jacob, I do not disagree with your point about corporate culture. I just do not see any evidence that the junk bond investments are 'high risk' investment. They may very well be or they may be very well managed. I think you reached your conclusion about QCOM's management independent of the junk bond issue, which is fair enough. I would be surprised if the junk bond portfolio was managed under anything but the most conservative principles. We shall see. Paul

To: Jacob Snyder who wrote (51190)	5/1/2002 5:18:25 PM
From: carranza2	Read Replies (1) \| Respond to of 54805

Jacob, I consider you one of the shrewdest investors at SI but I think perhaps you are a bit too conservative on the junk bond issue. Take a look at this Moody's web site, and particularly the Dec '01 default figures on junk bonds. The forecast for defaults for the rest of the year is that they will decline considerably, down to 7% by year's end. If the amount of money Q invested is spread out over a substantial number of issuers, it appears to this untutored investor that the risks incurred are reasonable. riskcalc.moodysrms.com