Terrific comments, John; thanx for reading my post and picking it apart <g>.
My problem with them, like so many pure internet plays, is the looming competition from more mature players. Haven't both Intel and IBM announced and begun moving into this space? So, we have two gorillas trying to move against a king, I think.
What happens when the Big guy steps in to claim a little guy's territory? IBM has not done very well in the PC competition with Dell, even tho' IBM was first and a zillion times bigger. How well will Intel do in the networking chip market, competing with the PMCS, Conexant, and the others? (I hold Intc, so I am hoping they step up to the plate) How well will Lucent do in networking equipment up against Cisco? Most people around here will tell you Lu isn't nimble enough (ie, small enough).
So will EXDS be a Dell or Cisco, small enough and focused on its primary mission and hold off the Big Boys, with bigger pockets, but more distracted? I don't know, which is why King EXDS should be held lightly, and watched closely. I think Uncle Frank was right, in a case such as this, when he asked a poster if they knew their company's dates for reporting quarterly earnings. I would be totally devoted to EXDS on those days, searching for reductions in customer accrual, or reduced revenues.
Stan |
