Good Morning Harry and Everyone: Here's my pullout section in part on Intranets!
I just wanted to add a few thoughts as we resume trading on the unfolding technical structure. One of the graphic differences that FNTN has displayed from a charting stand point during its recent run-up from the .60's to this new range, was the parabolic nature of the rise and the unstoppable momentum.
This new development, on top of the triple one two base formation, confirms, in my view that we are either in the process of forming a third wave, or are about the enter into one. Either way, it can be considered to be very bullish, but the latter would have to be further considered as exceedingly bullish.
It's been my experience that stocks that tear way from lower levels like this and start probing new 52 week highs, invariably move substantially higher. Should we move sharply higher this week, the developing structure would definitely strengthen the case for a re-test of the highs at $7.5 for FNTN as one of the primary objectives for this stage of the third wave. Beyond that we will have to wait and see, but almost every time a stock revisits its old highs following extreme lows, it doesn't stop there and often its a signal of much greater things to come.
I did post this next article entitled: "The Next Great Growth Wave", coincidentally with the mid-June market bottom. I believe it still has merit at this time and may be of interest to recent visitors who may not have read it. For instance, since I wrote that article, Intel and the computer giants have risen very strongly bearing out some of the expectations contained therein. Why have these stocks risen so strongly, perhaps its because investors realize that there is so much decaying inventory out there that needs to be replaced, they have already started bidding up those companies that will benefit most from all this. This trend will likely accelerate as the packaging of attractive inventory replacement solutions are offered in the form of Dynamic, must have, plug and play and scaleable Intranets that can perform all contemporary functions and more and at the same time bring us kicking and screaming into the video age at the dawn of the 21st Century. The more I think about it, the more I see Intranets leapfrogging the Internet connected by video and high speed data highways, not unlike that depicted in FNTN's appropriate new Fiber Optic pipe logo. Just as the Internet is now on everyone's lips, Intranets soon will be. Please keep in mind, this was originally written before the release or Windows 98.
The Next Great Growth Wave
With the dramatic re-awakening of interest in the technology sector over the past few days, I genuinely believe that the markets are beginning to confirm that another great growth wave still lies ahead of us.
Remember how three years ago, the launch of Windows 95 in a blaze of publicity, ushered in whole new era of computing. I believe the upcoming release of Windows 98 will inspire a repeat performance. With W 95, the first hint of trouble for status quo W 3.1 users seeking to upgrade to the new operating system, was that they would soon run out of disk space. Next to fall by the wayside, was the 486 as having insufficient processing power to effectively handle all the new programs and multi-tasking capabilities offered by the new 32 bit Windows architecture and finally, a huge investment in extra memory would be required to seal the deal. The result: Disk drive maker stocks went through the roof and for a brief period memory makers also zoomed before an oversupply sent them crashing back to Earth. Then the Internet caught fire, sending the three major engines and beneficiaries of the Wintel Pentium Alliance and the early stage Internet era, Microsoft, Intel and Cisco systems and hordes of coat-tailers on a long and sustained growth wave.
So, now what's ahead? Well, I believe plenty more. Why? Think of it this way. In the first part of the decade, Intel's 486 was the standard. Then the new Pentium followed powering the Windows / Internet explosion. And now, we are making the transition to the Pentium II, which in of itself represents another quantum leap in computing power, that will Integrate dynamically with Windows 98 and the explosion in bandwidth that Internet Phase II is about to usher in with a vengeance. Add to that the rock bottom memory prices that now abound and a formula for the next great growth wave is born. There's even more: The next generation of powerful high speed memory chips is already close to reality offering up to four gigabits of Dynamic Random Access Memory, that's over 100 times the current standard. The combination of all of this, along with ultra high definition monitors and the new Windows 98 software, now enabling the use of multiple screens in a 'workstation' environment is likely to provide a computing experience as yet un-imagined.
If you think the last three years saw growth, you ain't seen nothing yet. The new programs and add-ons that are likely to be launched coincident with this new growth wave, along with the launch of Windows 98, NT 5, improved browsers and unprecedented high speed internet access, is going to boggle the mind with a dizzying array of new choices. Why? The main reason is Moore's law economics and the continuance of the computer boom that has already brought us this far this fast. This next growth wave is going to give us at least twice, if not three or four times the bang for our buck as the last one. It is going to bring unmatched affordability and power to a whole new generation of Internet and computer users that will number in the tens if not hundreds of millions. That's the domestic side. Now factor in the business side and consider the tens of millions of computers that are already beyond obsolescence and yet are still in operation out there around the World and you begin to get the picture. How many of those computers represent certifiably incompliant year 2000 junk, in other words replacement will become beyond compulsory. How many businesses all around the World still need to get up to speed with the latest generation of programs, operating systems, Pentium II processing power and future connectivity provided by high speed secured Intranets - Millions upon millions of upgrades and outright replacements required. It's going to become a whole new World with an unshakeable mindset of: "Out with the old and in with the new", every time we graduate to a new level of computing as a major upgrade or introduction of new components & improved software comes along.
As stated many times before, in business today, if you're not using state the art technology - you're dead. This can only become more and more of a reality, as we approach the turn of the century and businesses are forced to jettison their older, out of date systems. And my own feeling is that once that once we actually enter the 21st Century, there will be a wholesale dumping of last century's equipment and renewed focus on the future, further boosting the potential for an unexpected boom to unfold.
To further illustrate the potential of this next growth wave, something extremely critical to its success began to emerge in recent weeks. Possible new standards in high-speed communications are unfolding that will soon be offered by our own Financial Intranet. These breakthrough, yet simple ideas, will eventually allow for one single phone line to be able to simultaneously handle multiple appliances including phones and faxes, and high speed internet access that may initially mean access of about 20 times faster and eventually could mean access to the Internet at up to 100 times the current speed standard. In summary, the coming 100 fold increase factor will render all previous technology infrastructures so obsolete that upgrades will become an absolute and madatory requirement in order to ascend to the next level of computing and new launch
platform that will enable the next great growth wave beyond.
Rgds
Wiz |
