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Technology Stocks : JDS Uniphase (JDSU)

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To: pat mudge who wrote (4255)1/11/2000 8:33:00 AM
From: t2  Read Replies (1) of 24042
 
Barriers To Entry Keep Competition At Bay
The extremely long and arduous process of developing, testing and launching optical components has kept a lot of potential competition from entering the market, Jungjohann said. Unlike the Internet, he said, this business has "true" entry barriers.

"There are very few people in the world that can make a laser that can sit a mile below the ocean floor and transmit thousands of Web pages," he said. Even if a company with the necessary financial backing wanted to enter the optics business, he said, it would still take about four years to bring a product onto the market.

Kalkhoven agreed that the optical components market isn't easy to enter. "This is not like an Internet company founded by 20-year-old guys that have suddenly made a fortune," he said. "There are many different ingredients in building tiny little devices that have to last forever."
http://www.siliconinvestor.com/readmsg.aspx?msgid=12529834

Pat, Thanks for posting that WSJ article. I found the above paragraphs very interesting. Maybe this story was responsible for a lot of the run up yesterday as investors starting realizing what a strong position this company is in. Convincing reasons to buy the stock.
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