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

To: chaz who wrote (51871)	7/4/2002 8:48:27 PM
From: Thomas Mercer-Hursh	Read Replies (2) \| Respond to of 54805

The link works a lot better without the extra http://www. on the front! The problem with a "study" like this in the context of my question is that I have no reason to believe that their criteria aren't orthogonal to those of the Gorilla Game ... complementary, perhaps, just as valuation is, but not the core of why we are gathered here together. Unless, of course, you are indirectly suggesting that I should forget all about the Gorilla Game until some other time and use different criteria in the present?

To: chaz who wrote (51871)	7/5/2002 9:02:44 AM
From: Eric L	Respond to of 54805

re: MONEY - Is your Gorilla stock shareholder friendly? Chaz, << I consider this to be worth a read by all of us >> Interesting article, and certainly timely. Below is an abstract of how the 5 known gorillas that are included in the 50 companies Money examined stack up. Shareholder Friendliness 1. Will directors make needed changes, or do they always side with management? Board Directors Nominating Compensation Staggered Independence Committee Committee Board? Friendly Target over Range: 50% 100% 100% No Cisco Systems 73% 67% 100% No Intel 73% 100% 100% No IBM 79% 100% 100% No Microsoft 63% 100% 100% No Oracle 67% 100% 100% No The Gorillas scored well here with only Cisco failing to meet all target ranges (nominating committee). 2. They align management's interests with shareholders, but they also can sap a stock's value. Option Threat Option Option Options Run Rate Overhang to CEO Friendly Target Less than Less than Range: 1% 10% to 20% 5% Cisco Systems 3.91% 23% 2% Intel 2.39% 27% 0% IBM 2.49% 22% 0% Microsoft 3.73% 28% 0% Oracle 2.66% 22% 0% None of the Gorillas met the target ranges for option run rate or option overhang and in general were higher than most all of the non-techs in these categories. Very few companies met the target range for Money's tests for "stockholder friendliness" in all categories. Three that did are ChevronTexaco, Exxon Mobil, and Johnson & Johnson. Money's table with column definitions can be found at: money.cnn.com Article here: money.cnn.com What did I learn from this? Citigroup (C) - which I am considering back to my port - is pretty darned stockholder friendly, missing only the option run rate (1.84%) target, and my Gorillas are friendly enough to suit my taste. <g> - Eric -