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

To: StockHawk who wrote (6818)	9/22/1999 12:09:00 PM
From: Dr. Id	Respond to of 54805

From: THE WIRELESS INVESTOR for Tuesday, September 21, 1999 Volume 1, #3 ANALOG DEVICES: REVOLUTIONARY BREAKTHROUGH Analog Devices, Inc. (ADI) announced last week that it has developed the industry's first direct conversion radio chipset for GSM (Global System for Mobile Communications) featuring a revolutionary radio architecture that provides 30﷓50 percent savings in cost and size for next﷓generation dual﷓band and triple﷓band GSM phones. The chipset, named Othello, features breakthrough radio frequency technology that allows incoming signals to be converted directly to baseband and includes significant improvements in power consumption. The chipset enables up to 1,000 hours of standby time for GSM cellular phones, allowing users to go for over one month without having to recharge a phone. Othello also enables data rates 25 to 30 times greater than today's GSM data rates of 14.4 kbps, making possible high﷓bandwidth applications such as web browsing, email, games and real﷓time video. COMMENT: Othello is a true breakthrough in radio technology making receivers independent of modulation schemes. While most of the press reports focus on the GSM uses (GSM is the leading cellular technology currently in use in Europe), the company reports that the technology is adaptable to code division multiple access (CDMA -- the technology spearheaded by Qualcomm (QCOM) and implemented in the U.S. by Sprint PCS (PCS) and Vodafone (VOD)). Because CDMA is already a superior technology for handling both voice and data, Othello should eventually benefit CDMA more than GSM as it will make the superior CDMA technology even better. However, until CDMA chips using Othello technology are available, some consumers may be persuaded to stick with the inferior GSM standard simply because of the Othello chip which may delay the move to a standard, third generation, CDMA-based system. However, because CDMA technology wins everywhere it is allowed to compete and because data transmission (which CDMA handles better) will soon be a critical factor in determining a mobile carrier, we expect the Othello breakthrough to benefit CDMA sooner rather than later. With largest U.S. carrier (see below) using CDMA technology, expect to see a CDMA compatible chip out soon.

To: StockHawk who wrote (6818)	9/23/1999 12:30:00 AM
From: Mike Buckley	Respond to of 54805

StockHawk, You'll have to pardon me for not noticing the page number the first time around. Thanks for providing it and your extended explanations. A terrific post! Thanks to you, I went back to that section of the book. The importance I got of it beyond the stuff you mentioned is that the authors actually provide a selling strategy. Regarding chimps: "Applications chimps cease to be holds should it ever become clear they are truly boxed in to the niches they arleady serve and lack any reasonable play for expansion. From that point on they may still have years of good earnings, but their lack of maneuverability makes them sitting-duck targets for new technologies entering the market." Regarding kings and princes: "On an individual basis, we suggest you sell any of these companies if they stumble in the marketplace. On a category-wide basis, we suggest you sell off the entire collection as soon as the category's overall rate of revenue growth starts to decelerate." --Mike Buckley