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

To: gdichaz who wrote (1010)	4/4/1999 11:05:00 AM
From: gdichaz	Respond to of 54805

Addendum re Loral and Globalstar: For Uncle Frank in particular. While I look at fundamentals in my analysis - the technological area first and key companies within them second - i.e. the wireless area within telecom (satellite in this case) and then who can provide the voice and data services - Globalstar and Loral respectively - must admit that these companies are very high risk with infinite PEs currently - zero earnings as of now. So PEs not test. If so, they flunk. Perhaps that is enough to forget them, but I suggest their possible potential makes the major major risk would considering. But since the first principle of investing is the ability to sleep at night, do not in any suggest these companies are for anyone nervous. :-) Others might wish to begin due diligence - at least take a look. Chaz too

To: gdichaz who wrote (1010)	4/4/1999 11:08:00 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>>for those of you who have to swallow hard to consider the gorilla Qualcomm or the royalty Uniphase given their very high PEs (more apparent than real IMO - but so be it), Loral and Globalstar have royalty potential at bargain prices (maybe). High ttm p/e is another Gorilla trait, but considering the explosive growth of revenue and earnings ahead of them, it isn't a metric that should deter a G&K practicioner. My current holdings are Cisco, Microsoft, Dell, and AOL, with ttm p/e ratios of 134, 79, 79, and 682, respectively. With regard to "bruised and battered" opportunities, I've tried to catch falling knives before, and have never gotten the hang of it. Feel free to nominate them to Justin for his Watch & Wait portfolio; he needs a few to replace qcom now that I've swiped it from him for the G&K Index. Personally, I've only been looking for one new great investment to round out my holdings to a handful, and qcom is it. Frank