Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
Al,

Wow! That's a heck of a list of items for screening. You might be better off checking in here for candidates. <ggg> However, there are some items on that list that might help at least rule out things that are not candidates. First, as you said the subjective items are not going to plug into a screen. Boy, if you could get a screen to run these six criteria.....

A potential GG company must meet these criteria:

1. Discontinuous innovation
2. Proprietary open architecture
3. High barriers to entry
4. High switching costs
5. Strong value chain formation
6. Tornado market exists or foreseeable

I would suggest at least the basics of:

• four letter ticker symbols only
• projected sales growth rate
• Sales Growth 1-Year
• industry/segments must be high technology only

along with any combination that might fit your knowledge. Early candidates will have N/A for the P/E ratios, then once the profits start to come in these P/E's will be very high as compared to a more mature technology company. Perhaps there is some way to screen for that, I don't know.

It sounds like an interesting exercise, but I'm afraid the criteria I list above might be more telling in the early to mid stages than anything a screen might be able to identify. If you study the 'game' closely enough, you'll understand just why that is. Probably best to identify as soon as possible new companies that crop up and what industry their technology targets. Why? Because a gorilla game evolves due to a 'problem' that needs to be 'fixed' by some sort of technology solution. These target niches are what causes new companies and niche segments to crop up in the first place. In that sense, for the early candidates, perhaps screening for companies that are one month to one year old. After that, the market pretty much knows and is well aware of their technology and position in their segment and will be talked about on various boards including this one.

BB

Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.