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No. of Recommendations: 18

Anatomy of a KARB Report

(or How to compose a KARB report in no time flat!)

Here's the criteria for KARB spelled out:
NEW KARB criteria http://boards.fool.com/Message.asp?mid=13444144

I start with one of my old reports as a template, here they are:

WIND analysis by xerohype
http://boards.fool.com/Message.asp?mid=13635406
CREE analysis by xerohype
http://boards.fool.com/Message.asp?mid=13539901
RMBS analysis by xerohype
http://boards.fool.com/Message.asp?mid=13771119

I then look up a detailed quote and its profile on Yahoo! Finance:

http://finance.yahoo.com/

There I find what the company does, a 1 year chart, market cap, and links to their investor relations page. You can also access the latest news stories and press releases, including their latest earnings press release.

I then look up their latest 10-K and 10-Q, there I take a quick look at the financials and calculate their revenue growth rate, gross margins, net margins (if any) from the income statement; from the balance sheet I look to see how strong their cash position is, calculate a Flowie and look at debt burden. The 10-K will also tell me about patents, risks in their business and competition.

Got to the Motley Fool home page:
http://www.fool.com/
There start a search for Fool articles about the company, you may find some News stories or a Rule Breaker or Rule Maker article on them.

When you are done with the articles, go to the message board for that stock and sort by recs. Go through the most recent, most recommended posts to find useful information. Also if there is a FAQ you are in luck.

I also look at the GG FAQ list of companies that have been considered for Gorillahood:
http://boards.fool.com/Message.asp?mid=13091110

20. Is there a listing of examples of completed GG analyses?

Yes, here it is (thanks to MacM for organizing these links).

1. Motley Fool http://www.fool.com
Ticker PostDate Author URL (line below)

RBAK 08-Aug-00 chlarsen (ChrisLarsen)
http://boards.fool.com/Message.asp?id=1360002000836000
JNPR 07-Aug-00 chlarsen (ChrisLarsen)
http://boards.fool.com/Message.asp?id=1360002000831000
RNWK 21-Jun-00 TinkerShaw
http://boards.fool.com/Message.asp?id=1360002000690000
BRCD* 16-Jun-00 TMFFuz
http://boards.fool.com/Message.asp?id=1360002000669000
NTAP* 17-Apr-00 Y2Krash
http://boards.fool.com/Message.asp?id=1360002000484000
MVIS 27-May-00 justphil
http://boards.fool.com/Message.asp?id=1360002000598000
JNPR* 28-Mar-00 GorillaGorilla
http://boards.fool.com/Message.asp?id=1360002000415002
GMST** 15-Mar-00 InvestorAlan
http://boards.fool.com/Message.asp?id=1360002000363000
LHSP 12-Mar-00 GaryX
http://boards.fool.com/Message.asp?id=1360002000349000
RBAK* 09-Feb-00 YouJest (GorillaGorilla)
http://boards.fool.com/Message.asp?id=1360002000184000
CREE 28-Dec-99 TinkerShaw
http://boards.fool.com/Message.asp?id=1380180000384000
ITWO*,** 04-Dec-99 jeffgro
http://boards.fool.com/Message.asp?id=1140134000277000
* Not strictly GG analysis, but substantial relevant information
** Also available at the Technology Reports site (see below)
2. Silicon Investor http://www.siliconinvestor.com
Ticker PostDate Author URL(line below)
NTAP III 05-Jun-00 DownSouth
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13833064
SNDK (1) 29-05-00 Ausdauer
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13792522
PHCM I 25-Apr-00 John Stichnoth and Susan Huebert
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13494375
PHCM II 25-Apr-00 John Stichnoth and Susan Huebert
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13494504
PHCM III 25-Apr-00 John Stichnoth and Susan Huebert
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13494593
CHKP 13-Apr-00 Eric Jacobson
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13418067
RATL 01-Apr-00 Bob Wozney
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13330211
ELON* 13-Mar-00 janet_wij
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13188125
INFS 29-Mar-00 John Stichnoth
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13307427
WGAT 29-Mar-00 mishedlo
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13301716
KOPN 11-Mar-00 voop
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13182809
ATYT 18-Feb-00 Smacs
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12908838
EMLX 17-Feb-00 buck
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12895284
RMBS 15-Feb-00 rel4490
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12880620
RNWK 13-Feb-00 surpow
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12881318
CREE II 05-Feb-00 FLSTF97
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12785409
CREE I 03-Feb-00 FLSTF97
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12763206
HLIT 01-Feb-00 Eric Jacobson
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12743500
WIND 27-Jan-00 John Huber
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12706654
BVSN 17-Jan-00 James Sinclair
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12595977
NTAP II 14-Jan-00 DownSouth
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12573356
NTAP I 31-Dec-99 DownSouth
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12426817
EXDS 08-Dec-99 Apollo
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=12230572
(1) Non-gorilla follow-up by Ausdauer (01-Jun-00):
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13808062
www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13808089
* ELON corrected links:
www.intellicom.se/lon/lonworks.html
www.westermo.se/education/lonworks.html
3. Technology Reports
www.technologyreports.com/analystreports.html
Ticker PostDate Author URL (in line below)
INSP 27-Jan-00 George
www.technologyreports.com/reports/analystreports/infospace.html
INTF 13-Mar-00 Mathemagician
http://members.xoom.com/gorillagame/analystreports/INTFreport.PDF
ITWO* 15-Feb-00 jeffgro**
http://www.technologyreports.com/reports/analystreports/i2technologies.html
* An "analysis of i2 using Philip Fisher's 15 Points Framework"
** Mistakenly attributed to BB, see this post for explanation:
http://boards.fool.com/Message.asp?id=1140134000277000

Here's the skeleton/outline view of a KARB report:

XXXX KARB Analysis

See this post for NEW KARB criteria:
http://boards.fool.com/Message.asp?mid=13444144

A. Top dog, first mover, in an important, emerging industry that is currently in the Tornado (hypergrowth), or is in the early stages of Tornado/hypergrowth growth. (Most of the signs of Tornado formation/growth as laid out in the Gorilla Game FAQ must be met; refer to item #12 in this post:
http://boards.fool.com/Message.asp?id=1360002000838000


Top Dog:
From Yahoo! Profile:
http://biz.yahoo.com/p/
First Mover:

Describe why the company is a top dog and first mover in its sector.

Daily double features form the Fool can usually provide this information!
http://www.fool.com/ddouble/2000/ddouble2000.htm

XXXX as a Gorilla, look for information in SI and TMF GG boards.


B. Sustainable advantage gained through business momentum, patents, visionary leadership, high barriers to entry, and high switching costs.

Look at 10-K for number of patents, search stock boards for summaries. What makes this company special, and how can it sustain its advantage? Trade secrets, better marketing, discontinuous innovation?


"C. Excellent Growth Metrics"

RELATIVE STRENGTH:
XXXX's Relative Strength in the past 12 months, according to www.moneycentral.com, is >90? (as of this date). You can also look in IBD.

0-2 points.

SALES GROWTH:
YoY:

That's a growth of XX.X%.

QoQ (TTM):

This is a growth of XX.X%.

QoQ (3 mo):

This is growth of XX.X%

0-2 points.

Sequential (TTM):

That's a sequential quarterly growth of XX.X%.

0-2 points.


"D. Clear signs of solid execution by a strong management team; Value chain in place or shows clear signs of developing (eg. alliances, joint ventures, partnerships, signing up distributors, third party developers, and VAR's)"

Look at the latest CC notes (or actually listen to the latest conference call!), articles about the company's management on-line (search using http://www.google.com ). Look for recent alliances and partnerships in the latest 10-Q and press releases.

"E. Company products and brand name are well recognized and respected by its customers, peers, competitors and partners in the relevant industry."

Examine the value chain, is it strong? Are the company's products leaders in their sector.


"F. Valuation metrics: "

(as of this date)
http://biz.yahoo.com/p/

MktCap: $X.X B
P/E: XXX
P/S: XXX

A very interesting valuation model I've seen presented here at TMF is one of growth duration. See this article by Zeke Ashton (TMF Centaur):
http://www.fool.com/research/2000/features000810.htm
and this recent Post of the Day by GorillaGorilla on valuing BRCM:
http://boards.fool.com/Message.asp?mid=13747070

I'd like to incorporate this in the way we look at KARB and KARM candidates.


Risk:


Look at the 10-K, there is a detailed listing of risks for the company, usually the important things are ones that threaten the competitive advantage of a company (patent litigation, patent expirations, competitors with discontinuous innovations, etc.)


SUMMARY:


Summarize your thought on this company and explain why or why not it should be considered for KARB.

Heck, if you can even do half these things you'll have an excellent report.

Erick
(xerohype)

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