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Technology Stocks : Digital Island,Inc - (Nasdaq- ISLD) -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (187)	7/22/1999 1:40:00 PM
From: Mr. Miller	Respond to of 1884

Hey djane: How can anyone say anything bad about a company that reports 11 straight quarters of 40% quarter to quarter growth? I think investors in this industry should embrace EXDS rather than find fault in them. They provide the credibility that this industry is earning. Owning EXDS would be a prudent investment, as I do. My way of thinking, though, is that usually where you find one nugget, there are other nuggets around. Examples of industries where this is true include fiberoptics, ISPs, content providers, DSL providers, cell phone companies, telecoms, cable providers, software companies, boxmakers, to name a few. It is not often that there is only one successful company in an industry. EXDS is the leader here, but they have yet to win, nor do they "dominate"(as that report indicates) the industry. The other companies have been mentioned and discussed. You can't buy companies and hold them on the hope for success. The story changes, and if it changes for the worse, you leave. Each company in this sector is independent and has its own story. There is plenty of room to grow, and there is no glut as far as the eye can see. For ISLD, part of the story that looks so good is in the numbers. No matter what a company boasts, you must deliver, as EXDS has. ISLD has been delivering incredible growth numbers the last three quarters, and analysts and investors will be looking for confirmation of this growth on August 3rd. At some point, reality will set in, as the accelerating growth rate can't last forever, but if it lasts for the next three or four quarters, then the stock will react most extraordinarily. The keys to the success in the internet space is top line growth. It demonstrates position and obviously growth. If ISLD delivers more than 80% growth quarter over quarter, why would investors buy more of their competition, no matter what the price. In other words, why buy GBIX, who reported a great 33% quarter to quarter growth rate, when you could buy an EXDS, who reported >40% or ISLD who may very well report 100% or more. It is not about buying the cheapest stock, it is about buying the better company. EXDS is the dominant player, but the return on investment may be more in ISLD over the next 12 to 18 months since their quarter to quarter growth rate is much better. This is only one piece of the investment decision-making process. Other pieces say you must own some EXDS. This is not to say that the others in this industry won't do well, or better, for there are always intangibles which make one more valuable than another. Therefore, just buy them all. If one falters and the others succeed, the others can make up the difference in profits. If you only choose to buy the one, in an effort to guess who will be the BEST OF THE REST, it may be the one that falters. But if it does succeed and it doesn't do as good or better than the others, don't beat yourself over the head. Accept your gains, and move on. This industry looks strong, and is only going to get stronger. Miller