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

To: gdichaz who wrote (9295)	10/31/1999 3:18:00 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Cha2, Your skill in differentiating between king and gorilla is immense. Your trap for me was tempting, but failing nonetheless. :) Seriously, the answer to your question about JDSU will be revealed in the answers to these questions regarding their core business: Is there an open architecture owned proprietarily by JDSU? If so, is it a discontinuous innovation? If so, is there a high cost of switching? If the answer to the first question is "No," JDSU is in a royalty game. If the answer to that question is "Yes," go to the second question before coming to any conclusions. If the answer to the second question is also "Yes," JDSU is in a gorilla game. Otherwise, it's in a royalty game. The answer to the third question helps measure the strength of a gorilla. The higher the cost of switching, the greater the gorilla's strength. Hope this helps. --Mike Buckley

To: gdichaz who wrote (9295)	10/31/1999 4:18:00 PM
From: JohnG	Read Replies (2) \| Respond to of 54805

Chaz2. Unfair question to Mike. It seems almost impossible to determine what IP JDSU has and how much of the standard they own. Just listened to their conf call trying to answer similar questions. What they did say is that in many categories they sell 3x to 4x the amount of their nearest competitors. Also, they have the most complete line of components by far in the industry and are leveraging on that to build modules that meet customer needs and save design/mfg time. It is, in my opinion, possible to own the industry by entering a 2x to 3x per year ramp up tornado with such a combo and continuing to buy all promising start up companies. This is brute force mastery of a complex many component product line. JohnG

To: gdichaz who wrote (9295)	10/31/1999 4:30:00 PM
From: Uncle Frank	Read Replies (4) \| Respond to of 54805

>> Mike: How about this? You politely declined my requests several times to do your famous due diligence on JDSU... So does he need to be impolite in order for you to respect his refusal, Cha2? You are our expert on jdsu. You brought it to our attention, are a long time investor in it, and have reaped fabulous rewards for your vision. You should be presenting jdsu rather than asking someone else to do your work. The success of G&K in locating winners has been that each of us contributes based on our areas of strength and interest. It was never meant to be an "Ask Mr. Wizard" forum. Respectfully as always, uf