Heavy longs should consider the following
ONT investment is a twofold bet.
first, that the mere launch and big name companies that have shown interested in the platform, will attract stock buying interest while the market is still bullish, and anything Internet and Broadband related is especially hot.
SELL HALF YOUR POSITION AFTER DOUBLE
second, that after the dust settles, ONT looks like it may have a real shot at becoming a widely embraced standard of broadband video transmission, which will become as even more critical to the Internets potential than text, stills and audio is already.
HOLD THE 'FREE' HALF IN CASE WE WIN!
I am not at all worried that once broadband video standards are embraced, that there will be a lack of applications. remember that Sega is one of ONT's proponent, and MSFT which is developing it's own 'X-Box' console gaming/internet entertainment box will be using broadband with a video standard like ONT's to it's fullest potential in order to justify it's high end products and services. The morons on Yahoo claiming they won't sit at their computers watching movies simply don't have the imagination needed to grasp the potential of their investment here; as ONT will not only be a technology enabler, but become a champion to enlighten the industry of the wide variety of possibilities their technology with broadband can provide. broadband providers will be watching very carefully for any content infrustructure that will help justify their huge investment to provide broadband. Like I've written before, the Internet is still too Modem content geared to keep people on broadband. So it will be up to ONT and other broadband content enablers like them, to entice broadband customers with content and service that ONLY work with a higher speed (and more profitable) connection. I expect don't expect early support from software companys to rally around ONT, rather broadband builders will finance ONT's initiatives in order for their marketing departments to have more ammunition to attract more customers to all that broadband infrustruture they are all rushing to build. |
