Demand is THE issue for this industry. The only issue.
The barriers to entry are huge, and no one else can come in for years. Even then, the ability to effectively compete is probably fairly limited beyond Lor and Mot's Iridium.
Readware regularly po po's the sufficiency of demand issue, and asserts he is more than satisfied. HE has seen reams of studies that demonstrate it ad infinitum. The AOL thread, and for that matter this one here, seem totally convinced. I as a skeptical SOB both by inclination and by training (I was raised as a securities / M&A lawyer) do continually wonder and worry, I guess cause its about the only thing to worry about.
And this kind of response is the only thing I have against Readware. Occasionally I develop dark worries about his motivations/ knowledge as a result, but that is only occasionally. Yes, I have repeatedly posed the question to him, but have given up. However, other sources do seem to generally concur, such as the Lehman, Unterberg, Merrill and other analysts.
However, it seems to generally be a bit of a shot in the dark to me. As in the best information, which isn't worth a damn, says it should be robust.
Having said all that, I am massively long in Gstrf and to a somewhat lesser extent Lor, and have made a pretty obscene bundle in both so far in the last several months.
Doug |
