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

To: Naveen Kumar who wrote (10301)	11/14/1999 10:22:00 AM
From: Todd Bishop	Respond to of 54805

Naveen, Stockhawk's research over the last few days was in response to a post I made last week which pointed out SSTI's great quarter. SNDK had been pulling away until then and this may have been an aberration. Stockhawk's findings mirror mine so I did not post my own except a question I had here and there. Basically, SNDK has a significant lead that will likely be difficult for SSTI to keep up with let alone gain on. SNDK owns significantly more patents and as a result receives more royalties and license fees. SSTI mgmt has also stumbled once before and does not seem to have the vision of SNDK's mgmt. SNDK mgmt took a calculated risk in opening up CompactFlash but were successful in creating an industry standard as a result. They have large competition which would have likely prevented CompactFlash's widespread adoption otherwise. I'm going to hold SSTI due to their decision to focus on another market segment, combo cards which have flash and SRAM on a single chip. The applications for this are intriguing to me. I plan to create a stronger position in SNDK for the reasons stated above. True gamers will either wait and see with each of these or begin a position in SNDK. SSTI receives substantial revenues from Qualrilla (not to mention a couple kings and a potential one in Broadcom) and may be in a position like Rambus to ride their coattails. Keep in mind they still face patent lawsuits that I am only somewhat concerned about their ability to defend or settle. SmartCards are not one of their technologies. Todd