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Technology Stocks : JDS Uniphase (JDSU)

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To: mariner who wrote (398)6/17/1999 10:50:00 AM
From: Wizard  Read Replies (1) of 24042
 
Mariner,

easy answer to: <<AOL's ability to charge a monthly fee. Why would I pay this on top of ISP charges to surf?>>

A couple of reasons:
Brand. When most of America thinks of e*mail, they think of AOL. Also, do you pay $1.50 for a Venti Starbucks or do you pay $1.00 for the big gulp convenience store cup? My point is you get something better when you pay a few extra bucks for AOL. Besides, most of America is confused by technology and just wants what is easiest.

Network Effect. The value of a communications network grows exponentially as you add members.

Scale. AOL has reached mass where incremental services and content cost a little and generate a lot.

AOL is the blue-chip company of the best growth industry on earth. Growth investors will always come back to this stock. That is nice to know when you are looking for core holdings to outperform the market on a long-term basis and provide great trading opportunities on a short-term basis.

Now back to topic, is JDS-Uniphase the Intel of the internet?
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