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

To: JRH who wrote (2354)	5/31/1999 12:35:00 PM
From: gdichaz	Respond to of 54805

JRH: Justin. Now I am even more impressed with your willingness to accept Nortel Networks (NT) in the W&W to watch. This suggests an idea on diworstification. My experience has lead me to prefer concentration to broad diversification. But it is possible to concentrate on certain areas or technologies but diversify within them - at least at first. This is consistent with the gorilla game approach. All with the idea of adding to the best performing over time. In this way is possible to limit the field of knowledge necessary (and the amount of time spent) for background, priorities, etc. but have more than one bet on the table. This is why the first telecom equip stocks I bought were LU and NT. I still hold both and expect to keep unless there is a radical technological shift which affects their fundamentals. An example would be a shift to electric wires to carry data as well as electricity efficiently. (But Nortel has a hand in there too). But, as I learned more, I concentrated more on wireless and fiberoptics. Hence, the Q and Uniphase. But this does not mean that wireless should be limited to the Q necessarily. Loral, G* are examples of satellite stocks which have major potential IMO. So a terrestrial wireless and at least one satellite wireless company seem worthwhile holdings - balancing against fiberoptics as well. This way the three main possiblities for potential rapid data transmission are covered - terrestrial wireless, satellite wireless and fiberoptics wireline. Then company selection is secondary as long as only those with the best potential are chosen. Again, just a possible approach to concentration (in areas or technologies) and diversification (in leading companies in those areas or technologies). Comments? Chaz too

To: JRH who wrote (2354)	5/31/1999 2:14:00 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

You must have bought lu on one heck of a dip to have a 200% return in "just over a year". techstocks.com Over any period of time I look, csco is clearly superior, which is what you'd expect from the Gorilla of a red hot sector versus an overweight King in a warmish but capital intensive sector. What I'm getting at is that your lu holdings rather than your csco might be the better source for re-allocation if you're considering shifting more cash into qcom, nite, sebl, gmst, sfe, unph or anything else interesting that we've been (yes, Chaz2 and Teflon, I've been listening). You might want to look at your dell as well; great company but the sector is screwed for at least the rest of 1999. Personally, I've cashed out of dell and reduced my csco position by 50% (at 121 <g>) to increase my qcom holdings. Time will tell, and that's where you have the clear advantage over most us G&K afficiandos; you've time on your side. Frank btw, quit screwing off and start studying for finals - and if you see my kid, tell him the same thing <g>.