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Biotech / Medical : AFFYMETRIX (AFFX)

AFFX 14.01

0.0%

Apr 1 5:00 PM EST

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To: LLCF who wrote (1031)	10/23/1999 11:33:00 AM
From: Andrew Danielson	Read Replies (1) of 1728

<I don't see that many similarities unless there is something special about their chip which makes it preferrable to potential competition.> Let us not underestimate the advantage of first-mover status. AFFX dominates the market, here and now. There may be superior technologies from various rivals at various points along the road to commercialization, but if AFFX plays its cards right, it won't matter. With real, fast-increasing revenue streams, AFFX can afford to develop strong, well-funded in-house research. The latest quarter showed R&D spending of $9.7 million. Even their well-funded competitor (but productless) NGEN spent a smaller $6.8 million over their last quarter, while racking up an ever-increasing $60 million in debt. Wall Street has already bestowed "junior gorilla" status on AFFX via its whopping (relatively speaking) market cap. Take it from other junior-gorillas-turned-gorillas like CSCO--if you don't have the best technology in-house, then buy it. With AFFX's high-flying stock, they're in a position to do just that. Andrew Danielson "If the guy with the best technology always won, we'd all be surfing the web from Macintoshes and watching movies on Betamax."

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