Gorilla and King Portfolio Candidates Message Board

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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Snowshoe who wrote (30991)	9/3/2000 8:44:46 AM
From: 100cfm	Read Replies (1) of 54805

WIND's primary competition is against in-house "roll-your-own" technology in companies with deep pockets (such as Sony), as opposed to head-to-head competition against equal rivals Being a Gorilla allows a company to charge a price for their products that allow fat NET margins. The above statement tells me that they are probably winning business on a low price bassis and not due to a proprietary lock on an IP or standard(that doesn't make them a bad company). Therefore they will most likely have to continue to spend large sums of money to a. stay ahead of the "In House" technical advancements and b. must do it cheaper then the In House staff in order to convince a company to go with an outside product, which will I believe keep pressure on net margins. Whereas the Gorilla's customers come to them because they either have little or no choice and hence must pay the price which allow for those wonderful upside EPS surprises. Although I have not studied WIND either, if I were an investor interested or invested in WIND I would be more concerned whether WIND could evolve into a Gorilla after a verfied Tornado more so then if it will or if it is in Tornado. 100

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