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: chaz who wrote (52581)	8/29/2002 4:39:13 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Chaz, On the one hand we've seen a good many firms announcing buybacks, which means they rather think their own shares are good values I think it means they think their shares have fallen a lot and that it's politically correct to announce a buyback program. There is usually huge divergence between the announcement of a share buyback program and the purchase of shares actually being bought. --Mike Buckley

To: chaz who wrote (52581)	8/29/2002 5:02:37 PM
From: TigerPaw	Read Replies (2) \| Respond to of 54805

they don't think the other guys are good bargains. One must always remember that just because things are really bad it doesn't mean that it can't get worse. Real estate bubble correction, war, and continued layoffs seem to be the near term expectations. Gorillas are supposed to be able to survive lean times, and perhaps even take advantage of them. Kings should at least survive. It is the emerging gorilla game where hard times may change the tactics. In particular it becomes problematic to buy a basket of stocks in an emerging technology. In theory, the relative worth of the individual stocks should vary as each stock finds some success or slips toward oblivion. In this environment another outcome is very possible, a company with good technology can find itself in a position where it's core technology is sold off leaving a shell of a company. The asset selloff (a result of low price and high debts or costs) may well be to an unrelated entity which was not in the original basket of stocks. No longer can it be counted that the survivers of a basket bunch will converge toward a gorilla or king. The winner may well be a vulture capital holding company. TP