Allen, First, I am not short IOM and won't be anytime soon! I actually almost pulled the trigger today and went long and then short, but that would have been crazy either way!
The word "niche" in reference to a product or product line was taught to me to mean a specific product, static in nature with a limited life cycle(meaning eventually it loses it's "niche", HA!)
Products to me that are "niche" products: processors, zips, jaz drives, Y2K solutions, Euro dollar solutions and DRAM!(yes, DRAM). All of these are static in nature, that is once they are created and used, time and technological advancements make them obsolete. New "niche" products are then created. As you would probably agree, the 386 was a niche product. INTC then came up with a new product etc... Virtual memory on a chip will one day replace DRAM, IMO.
My point with IOM is, the zip is a niche product. Do they sell a lot of them, your damn right they do. Is it static, yes. A new product will have to replace it for IOM to maintain earnings "growth". (That is how the term growth relates to INTC. As long as they keep replacing that faded out chip, they can maintain "Growth") INTC and IOM have niche products. INTC has also established or is in the process of establishing non-niche entities such as there advancement in the networking sector etc...
I hope this comes across as being civil! I enjoy the discussion with the people on this thread and appreciate all comments!
Rich |
