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

To: MKB who wrote (10379)	11/14/1999 8:23:00 PM
From: MKB	Read Replies (1) \| Respond to of 54805

An opinion on RMBS from the gg mail list: "As a high tech industry exec and successful gg variant investor, I would seriously caution those of you looking to see long term gg-like returns from RMBS. Repeated market research shows that customers, particularly corporate customers do not see the value of RDRAM and either will not purchase it, or will only purchase it if it is offered at the same price as SDRAM. If customers will not absorb the RDRAM premium, companies will not absorb the premium for long either. Memory by and large is not a huge driver of PC demand and expensive, small incremental (if any) performance memory is even less compelling as a technology investment. Undoubtedly, RMBS will have it spurts and runs as it has to date making it a timer's delight, but I seriously doubt that it will ever be a consistent long term winner. This is one stock that I would look for clear market acceptance (crossing the chasm) as evidenced by significant market penetration before taking the plunge. Given the execution issues in getting RMBS to market, other cheaper alternatives will dilute any first mover advantage RMBS was anticipating if not snuff them out altogether." MKB

To: MKB who wrote (10379)	11/14/1999 11:08:00 PM
From: taxman	Respond to of 54805

value line has gemstar stock ranked 1 (highest 7%) for timeliness over the next 6 to 12 months. it was on the basis of the stock recommendation that i bought the options. i acquired the stock by exercising the options about to expire and i am holding on to the rest of the options. i'll get back to you on what value line said in its report. regards

To: MKB who wrote (10379)	11/15/1999 8:31:00 PM
From: taxman	Read Replies (4) \| Respond to of 54805

here is what value line said about gemstar recently. gemstar is acquiring tv guide. under terms of the $8.2 billion deal, gemstar will issue .6753 shares of stock for each tv guide share, and assume about $600 million in debt. the transaction is slated to close during the second half of 2000, pending shareholder and regulatory approval. the new entity would have a commanding presence in the burgeoning electronic program guide market. in fact, were it not for the rapidly evolving electronic landscape (discussed below), regulatory concerns would probably be difficult to overcome. expectations for the electronic program guide market have high. the current investor perception is that the guides will become portals in the forthcoming interactive television age, generating large sums of advertising revenues. advanced guides are becoming available as cable and satellite companies deploy next-generation set-top boxes. interactive features will probably not be mainstream for several years, however, until these providers upgrade their networks. patented gemstar technology has been incorporated into a wide variety of platforms, and is capable of being delivered over satellites, the internet and traditional airwaves. but the battle over the interactive landscape is intensifying. sony's itv, which provides on-screen information at the click of a button is already on the market. perhaps a larger threat is a potential convergence between television and the internet. indeed, internet access via set-top boxes is already available in select markets, and were this to become widespread, barriers to entry in gemstar's market would be significantly lowered. gemstar management has done an admirable job of positioning its electronic programing product. it has thus far defended its intellectual property, struck deals with a multitude of consumer electronics and media industry players, and has forged joint ventures in germany and japan. the deal with tv guide provides a powerful brand name, additional market penetration, and alliances with at&t and news corporation. the stock is timely for the year ahead, but long-term investors with a tolerance for risk might want to wait for a stock price pull-back before making commitments. regards