Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0

I thought RB companies were supposed to be superfast growing companies with not too big a market cap. And RM companies were supposed to be established giant companies which are leaders in their field.

By this token I would think AOL would be a RM and JDSU would be a RB, but the Motley Fool has picked the other way round !!

I am just trying to understand the basics here.

thanks.
Print the post Back To Top
No. of Recommendations: 0
I thought RB companies were supposed to be superfast growing companies with not too big a market cap. And RM companies were supposed to be established giant companies which are leaders in their field.

By this token I would think AOL would be a RM and JDSU would be a RB, but the Motley Fool has picked the other way round !!

I am just trying to understand the basics here.

thanks


You have to remember that the Foolish Portfolio (predecessor to the RuleBreaker Portfolio bought AOL way back in August of '94. Back then, AOL was the upstart. Now, of course, AOL makes the rules by itself. As far as JDSU, it fit all the RM paramaters and like you I would have classified it more of a RB.

Good Hunting

Andrew
Print the post Back To Top
No. of Recommendations: 0
I thought RB companies were supposed to be superfast growing companies with not too big a market cap. And RM companies were supposed to be established giant companies which are leaders in their field.

By this token I would think AOL would be a RM and JDSU would be a RB, but the Motley Fool has picked the other way round !!

I am just trying to understand the basics here.

thanks


You have to remember that the Foolish Portfolio (predecessor to the RuleBreaker Portfolio bought AOL way back in August of '94. Back then, AOL was the upstart. Now, of course, AOL makes the rules by itself. As far as JDSU, it fit all the RM paramaters although like you I would have classified it more of a RB.

Good Hunting

Andrew
Print the post Back To Top
No. of Recommendations: 0
This post reminded me of the "Rule Tweener" discussions that I have not seen in a while.

Tweeners were stocks that started out as RBs and then grew into established RMs.

There is a Rule Tweener - Strategies board I think. But it did not get much discussion so I stopped visiting a while back.

Are there any Rule Tweener fans out there? And if so, my question to you is: Did TMF ever say that they actually would put the Tweener strategy into motion? In other words, was there ever any serious discussion that the RB port would sell AOL since it outgrew its RB status and that the RM port would then buy it for their port as soon as money was available?

I can not remember where I read whatever made me think this, but maybe one of you knows the answer to that.

Either way, I understand the original question, and also thought, at first glance, that JDSU seemed more like a RB. But in hindsight, it seems like the RM picked up two great companies recently.

Thanks for any opinions or recollections of Tweeners,

Aridian
Print the post Back To Top
No. of Recommendations: 0
Adrian,

I think the Fools-that-be generally look at Tweeners as a bad thing. A Tweener, as I understand the definition, is a company that has moved beyond its 'Breaker' phase and has not yet become a 'Maker'. If it doesn't get there, it goes through a 'Tweener Death Rattle'. A textbook example would be good 'ole IOM. Another example, imho, is DELL. It's hyper-growth phase is behind it. It had redefined how to sell stuff. Now it's reinventing itself. If successful, it starts making the rules. If not, another Death Rattle would be likely. Opinions?

Good Hunting

Andrew
Print the post Back To Top
No. of Recommendations: 0
Andrew,

Thanks for the reply.

By the way, I found out where I first read all the info about Tweeners, it is located in the Rule Breaker - Strategies FAQ.

The FAQ explains the Death Rattle that you mentioned, and how some companies like YHOO and MSFT were once RBs but they survived that pesky rattle.

This next comment sort of leans into a thread I started on the RB board, but it seems like passing the GorillaGame criteria may be akin to surviving the death rattle, as many RMs are classified as Gorillas as well.

Thanks again,
Aridian
Print the post Back To Top