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No. of Recommendations: 4
 36% (221 Votes)
American Express
 6% (39 Votes)
T. Rowe Price
 18% (110 Votes)
Coca-Cola
 29% (174 Votes)
Pfizer
 9% (56 Votes)
Schering-Plough
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No. of Recommendations: 0
TMFVerve,

The greatest fault that I find with all of the Polls which are showing up is that they lock you into a specific set of choices. My choice is None of the Above.

I think that these choices are not the best for the next contribution. My choice would be CSCO/JDSU/NOK, in that order. I know that this doesn't answer your question as asked, but it is my $0.02.

Fool On,

alke
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No. of Recommendations: 0
american express may be doing alot of things right but there online brokerage needs some user friendly help . that said they are a great company.
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In today's column, I made a case for the need to beef up some of our underweighted Rule Makers. So choosing among the following five choices, where would you
invest the MakerPort's next $500 given its current portfolio structure?

36% (121 Votes) American Express

5% (17 Votes) T. Rowe Price

17% (58 Votes) Coca-Cola

31% (104 Votes) Pfizer

10% (35 Votes) Schering-Plough

The developing Fool in me wants to trust this poll but verify :-) Still on the fence about Pfizer :-)
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Why not go on a broadband company ?
Terayon (Nasdaq: TERN) for example ???
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No. of Recommendations: 1
If it is good enough to remain a Rule Maker, it should be good enough to get new money, right? If you accept that thinking, then it would appear logical to simply put new money into the lowest valued holding. Coke not good enough to receive new money? Then kick it out. Don't believe SGP or TROW will turn it around? Kick them out. AXP makes perfect sense to me, but it is now the smallest holding right now.
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>> Why not go on a broadband company ?
Terayon (Nasdaq: TERN) for example ??? <<

They do own JDSU. But they don't own any cable/dsl stocks, and probably won't any time soon.

The Rule Maker Portfolio invests in Rule Makers, not industries. They are interested in buying the very best companies, using Rule Maker principles. They are not obligated to buy a company in any specific industry. An attractive industry is a good place to look for Rule Makers, but if no Rule Makers are found, no companies from that industry will be bought.
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Although the vote limited us to the 5 rulemakers listed. I would strongly consider Home Depot in my selection. Does it qualify under the rulemaker guidelines?
mc5257ky
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No. of Recommendations: 1
Although the vote limited us to the 5 rulemakers listed. I would strongly consider Home Depot in my selection. Does it qualify under the rulemaker guidelines?

In a strict sense, no it doesn't. It fails mostly because its gross and net margins don't meet the 50% and 7% thresholds. yFool completed a Rule Maker analysis on Home Depot a few weeks back, which you can view at the following link:

http://boards.fool.com/Message.asp?id=1030043001611000

This really isn't that surprising, since most mass retailers encounter the same problem. In order to make money, Home Depot must sell huge volumes of "stuff" since their profit margin per item is fairly low. This approach has served them and others like Wal-Mart well, but it is decidely non-Rule Makerish.

Rule Maker's have to ability to maintain higher margins simply because they have the power of brand -- people are willing to pay more for their product. For example, generic soda costs about 50% of what Coke products go for, yet the vast majority of the consumer public buys name brands. Why? They like the product, and the cost difference between the two is relatively insignificant. With retailers, they have a much harder time creating that "branding" effect since their isn't much that differentiates them from their competition. Since they are all pretty much the same, in order to attract additional customers, they must lower their prices, which hurts their margins.

Hope this helps.

the LanceMan
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Why not go on a broadband company ?
Terayon (Nasdaq: TERN) for example ???


Nishlup,

I think current Rule Maker portfolio member JDS Uniphase certainly fits the description as a "broadband" company, but that doesn't mean we couldn't go out and get another one.

As for Terayon, here is a snapshot of some of the financial data I pulled from the Hoovers website for September 1999:

Total Sales ~$75 million (TTM)
Gross Margins 26%
Net Margins less than 0%
Cash/Debt No Debt! (surprisingly)
Flow Ratio ~3.6

Since Terayon fails the Rule Maker criterion in just about all of these categories, I think you might want to go reread the official list of Rule Maker criteria before suggesting another stock for the portfolio. The criteria can be found at the following link:

http://www.fool.com/portfolios/rulemaker/rulemakerstep6.htm

Just my two cents.

the LanceMan
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