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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: Uncle Frank who wrote (5934)9/3/1999 5:42:00 PM
From: Teflon  Respond to of 54805
 
I thought this might interest the Group:

Internet Ready To Leave Home

By Dick Satran

SAN FRANCISCO (Reuters) - Now that the Internet has reached the ripe old age of 30, it's time to leave home.

Enter the era of ubiquitous computing -- the buzzword for the pervasive spread of the Internet beyond the computer motherboard where it has lived for its first three decades.

With ever smaller circuits and a rapidly expanding high-speed network, communications chips are being embedded in everything from refrigerators to Gameboys.

Internet browser-equipped mobile telephones are coming to market with the same processing power that mainframes had at the dawn of the Internet age, and 300 million mobile phone users worldwide will be able to link to the Web.

Ubiquitous computing is everywhere these days.

The largest technology companies are making networked computing their highest priority and scores of start-ups are looking for opportunity in building the devices and services that can be linked to the high-speed network.

Intel Corp. (Nasdaq:INTC - news), the world's largest chipmaker, said at the start of the year that the Internet had replaced silicon as the lifeblood of high tech, and that it was shifting its main focus to the network from the computer box

International Business Machines Corp. (NYSE:IBM - news), Cisco Systems Inc. (Nasdaq:CSCO - news) and Microsoft Corp. (Nasdaq:MSFT - news) also have stepped up their development efforts to reflect the changing demands of the ''Post PC'' computing era.

But ubiquitous computing isn't all just about the bottom line. For emergency room physician Ken Zafren, in Anchorage, Alaska, it's about life and death.

Zafren's Alaskan Native Medical Center already relies heavily on the Internet and computer modems to reach patients over the frozen expanse of Alaska and the Aleutian islands. Telephone, fax and e-mail connect him to patients up to 1,000 miles (1,600 km) away -- but it's difficult to make sound judgements with the crude tools now available.

Zafren looks forward to a time when stethoscopes, thermometers and blood pressure gauges will be rewired as communications devices so patients' vital signs can be read over the Internet in real-time, and ''distance diagnostics'' can replace the crude art of ''telemedicine.''

One of the most important tools, he says, will be the simple videocam linked to a high-speed Internet connection. ''Just seeing the patient would extremely helpful,'' said Zafren, who needs to make snap judgements on whether to evacuate patients in distant locations for treatment in Anchorage.

The Alaska doctor worries how and when his financially limited health service, which relies on government funding, will get access to such services -- and in this he's not alone. But in Silicon Valley, technologists say dramatic price declines and a host of new services are on the horizon.

At the famed Xerox Palo Alto Research center, known as PARC, where many of the computer world's innovations were hatched, Roy Want, who manages embedded systems research, says, ''With new technology, we'll be able to transmit at even higher speed at lower power.'' Translation: It'll get cheaper.

The much-quoted Moore's Law, that computing power doubles roughly every two years, is just one of the factors at play. Network capacity, the bandwidth, a measure of speed and capacity of the Internet, is growing even faster than computing power. That means more data can be sent for less money.

''There's so much bandwidth becoming available, even with all of the multimedia coming online, we'll reach a point where there is still a surplus,'' said Want.

How all this bandwidth will be used will be seen over time. One use, Want says, will be an increased use of ''sensors'' hooked to the Internet: in cars, buildings and appliances, wherever they can be put to intelligent use.

The expanded use of voice recognition will also have an impact in making computers much more ubiquitous.

Picture driving home on a chilly evening and being able to get a readout of your living room's temperature and being able to raise it from the car with a voice command. Not happy with the result when you get home? ''Too hot; make it five degrees cooler,'' might be all you have to say to the wall sensors.

Business is already moving furiously to shift for the totally networked world, working to provide new products, but also trying to avoid getting blindsided by competitors using new technology to compete.

''The Internet is going to do more than anything to create an intense period of global prosperity,'' said Halsey Minor, chief executive of Internet technology company CNET Inc. (Nasdaq:CNET - news) ''We've only just seen the beginning of it.''

Not everyone, however, is sold on the idea of a global network that reaches everywhere. Some see an Orwellian nightmare with Big Brother's role played not by repressive governments but by techno-crazed marketers.

''People are becoming ambivalent about technology. The ubiquity of computing and communications is convenient at the time they want it but invades the personal space many times over,'' says Jason Catlett, of the Green Brook, New Jersey-based consumer advocacy group Junkbusters Corp. ''The more connected the society, the more interruptions it brings. Private space is disappearing.''


Teflon



To: Uncle Frank who wrote (5934)9/3/1999 6:00:00 PM
From: Teflon  Respond to of 54805
 
The good news today folks is that another of our favorite Gorillas - MSFT - ws up 4.5%. Seems to have broken resistance at 95 and should have little trouble heading for a new all time high by the end of September, provide AG doesn't do anything too drastic. I thought this move by MSFT with respect to MS Office was very telling as to how Ballmer is looking to shape the Company.

Microsoft Office Software To Go On Web -FT

LONDON (Reuters) - Microsoft Corp (Nasdaq:MSFT - news) has revealed plans to offer its top-selling office software as a service on the Internet, the Financial Times reported Friday.

The move comes just days after Microsoft rival, Sun Microsystems Inc (Nasdaq:SUNW - news), announced plans to offer word processing,
spreadsheets and other office applications on the Internet free of charge.

''We certainly will have Web-based office productivity services, no doubt about it,'' the FT quoted Microsoft president Steve Ballmer as saying.

Ballmer would not say when the services might be offered, and did not address the issue of whether Microsoft would charge for use of the programmes, the FT said.

The services would be based on Microsoft Office, the package of productivity programmes which brought in 40 percent of the company's revenues last year.

Ballmer played down the threat posed by StarOffice, the package produced by Star Division Corp, which Sun recently acquired.

''We have been competing with StarOffice for years and years,'' he said, questioning the functionality and compatibility of the rival product.

Ballmer told the FT that the big issue facing Microsoft and all other software companies was whether customers would in future want to pay for software which they would install on their own computers, or access it via the Internet.

''Our strategy has got to be to leverage Microsoft Office. There is no doubt that is the right thing for the customers,'' he told the paper.


Teflon



To: Uncle Frank who wrote (5934)9/3/1999 6:05:00 PM
From: Teflon  Respond to of 54805
 
Interesting news on the Q front - this just hit the wires:

Friday September 3, 6:58 am Eastern Time

INTERVIEW-Ericsson sees no slowdown in N.America

By Salomon Bekele

STOCKHOLM, Sept 3 (Reuters) - Swedish telecoms group AB LM Ericsson, the world's third largest maker of mobile phones, expects no tapering off in the North American market where sales are going much faster than expected, an Ericsson executive said.

''So far this year we have delivered three to four times more than our plan before the year started and the development is absolutely not stopping,'' Bo Dimert, head of Ericsson's North American division, told Reuters late on Thursday.

In the first six months of the year the United States overtook China as Ericsson's largest market. Sales in North America rose 41 percent to 11.4 billion Swedish crowns ($1.40 billion), of which the United States accounted for about 11 billion.

This was 12 percent of the group's total sales of 92.4 billion crowns in the first six months of 1999.

Dimert said almost one-fourth of Americans were using mobile telephones and once this figure was surpassed sales would increase faster.

''When every fourth family member has a mobile phone it will be easy to buy just one more,'' Dimert said.

Shares in Ericsson fell sharply this week after news AT&T (NYSE:T - news), its largest U.S. customer, signed contracts with Ericsson rivals Lucent (NYSE:LU - news) and Nortel (Toronto:NT.TO - news). Nortel had not been a supplier to Ericsson in the past.

AT&T said it expected to save $900 million over the next four years through the deal.

''I don't think this is anything dramatic. Nortel has given AT&T an economically favourable alternative... This is more likely a quite dramatic one-off measure as opposed to evidence that price pressure is increasing,'' Dimert said.

He said Ericsson had good possibilities to raise its market share within mobile infrastructure in North America from today's 18 to 20 percent level.

Ericsson acknowledged part of the reason it lost the AT&T contracts was problems supplying equipment earlier this year. Dimert said no-one could have foreseen the strong growth of the U.S. market but Ericsson was working hard not to be surprised again.

Ericsson was now preparing for mobile phone use to increase to 40 percent of Americans, which would still be behind the 50 to 60 percent in the Nordic countries.

''It may well be the case that penetration increases by 10 percentage points to 35 percent next year and we must be ready.''

Dimert noted two new GSM licenses, Ericsson's entry into the CDMA market, and the fact that many operators are following AT&T's revolutinary one-rate plan for mobile phone usage costs, when asked about Ericsson's U.S. growth prospects.

''GSM has not been available across the entire U.S. but in recent tenders Dallas and Chicago received licenses. These two areas were big blank spots on the U.S. GSM map,'' Dimert said.

Ericsson expects CDMA (Code Division Multiple Access) standard, commonly used in the United States, to account for 40 percent of all investments in mobile infrastructure next year.

Thanks to its purchase of Qualcomm's (Nasdaq:QCOM - news) infrastructure earliler this year, Ericsson now has access to CDMA-standard equipment.

***''There is a very high possibility that we will take a CDMA contract by year-end,'' Dimert said.***

Ericsson shares were up three crowns at 267.5 crowns at 1035 GMT in a slightly positive market.

($1 equals 8.169 Swedish Crown)


Teflon



To: Uncle Frank who wrote (5934)9/3/1999 7:18:00 PM
From: Percival 917  Read Replies (2) | Respond to of 54805
 
Hi Unq,

I'd be happy to participate in discussions on SEBL and JDSU. I have positions in both solely based on discussion here and my own DD. I plan on increasing my positions in each as I have done well with them.

We also could definitely explore ARBA, SNDK, PMCS, SDLI, HLIT, NTAP, GMST, (to name a few) to much more considerable degree. Where they are in the GG, their competition, are they the leader, etc.

Maybe we should pick a specific area, list and thoroughly discuss the candidates (as to potential gorillas, kings, etc) until those on the thread have the right feel for that group and then proceed to the next group. Otherwise we get a smattering on company A from one area and then comments on company B that's in a completely different area and the whole picture never quite gets presented. Just a thought on my part and it may not be feasible, but I thought I would toss it out.

Joel



To: Uncle Frank who wrote (5934)9/3/1999 7:45:00 PM
From: Mike Buckley  Respond to of 54805
 
Frank,

I think Merlin has gotten weary of nominating sebl for the G&K without thread support.

Not at all. Just waiting for a solid, unwavering $10 billion market cap, in which case I'll be knocking at the G&K door. That should happen next year.

--Mike Buckley



To: Uncle Frank who wrote (5934)9/4/1999 9:58:00 AM
From: Sunny  Read Replies (2) | Respond to of 54805
 
Uncle Frank, I was not sure how things got moved from one list to the other. My purpose was to hopefully stimulate discussion about some other companies. For the last several days we have been dominated by QCOM and RMBS discussions of various natures.

The options discussions have been thought provoking. I must admit that I have begun to study how they work in preparation for trying my hand again. (some 15 years after my first foray). Then the sure thing, "QCOM" promptly turned around and probably messed up some well laid plans. This made me think again about not gambling with money I can't afford to lose.

Initially, I was for the Godzilla thread. And I still think its a good thing, but unfortunately I believe it is having a negative impact on this fine thread because it is causing many of the most thoughtful writers on this thread to split their time.

Good luck to all and let's find us a new gorilla!

Sunny