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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (65827)	8/5/1999 8:13:00 PM
From: GuinnessGuy	Read Replies (1) \| Respond to of 132070

Mike, Speaking of Fibre Channel Cos., Emulex just reported and absolutely blew away estimates by posting 39 cents vs 27 cents expected: biz.yahoo.com [SNIP] "''Fibre channel momentum continued to expand in the June quarter, driving the overall gains in Emulex's results. Fourth quarter shipments of Emulex fibre channel host adapters and hubs rose 213% from a year ago, an acceleration of the 159% growth achieved in the third quarter.'' Emulex's traditional networking product sector, which is comprised of network access and printer servers, continued to mature and collectively declined 32% from a year ago. Reflecting these trends, the company's fibre channel business grew to 69% of total revenue in the fourth quarter, up from 32% of revenue a year ago and up from 62% of revenue in the third quarter. Driven by expanding fibre channel sales, fourth quarter operating margin rose from the 8% achieved in the third quarter to 13%." [SNIP] I guess that this is what is referred to as entering the tornado in Moore's book, the 'Gorilla Game'. Note that Emulex makes stuff that is fairly easily commoditized. They will do well in the tornado, but as soon as this stuff hits main street they are going to have to pull more than a few rabbits out of their hat in order to maintain this kind of growth and margins. I give them a year, maybe two at the very outside before they hit the wall. In the meantime though, I won't be buying puts or going long. Still hanging onto Ancor, and that's enough excitement for anyone. -g- P.S. - I guess that you know that options on Ancor started trading on Tuesday. Have you traded any of these yet? If so, which one? Thanks .. Craig