Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rick who wrote (12118)	12/5/1999 9:36:00 PM
From: gdichaz	Respond to of 54805

Fred: Chuckle. Yes "Emperor" would fit - but an Emperor in glowing raiment - luxurious clothing - not without clothes. But to fit this thread, King is the proper term still IMO. Cha2

To: Rick who wrote (12118)	12/5/1999 11:04:00 PM
From: JohnG	Respond to of 54805

Fred. This discussion of whether JDSU is a king or gorilla has gone on for some time with several good pionts made as to why it is not a gorilla. Getting away from FM for a second and going with common sense there are some important points: 1)Patents--Neither Mike (who doesn't spend much energy on fiber optics), I or any one else on the thread has been able to quantify their patent position. I am 100% sure there is much strength there because a) I recall when uniphase was first formed, it was done by pooling patents and scientists from several companies working in the area including Philips and b) I saw the president/CEO on CNBC the other day talking about their strong patent position. 2)They have the only total product line among their competitors including specialiced modules that enable customers to save design time (TIME!!) 3) They have the most sophisticated lab and by far the largest group of experienced scientists. 4) They have an active M&A group gobbeling up a use related small company every month or so. 5) there is no doubt that they are in a fiber optic Tornado of unprecidented proportions with absolutely no close competitor and none on the horizon. This tornado has caused them to announce a 3x to 4x expansion of many coomponents in the next 12 months. Thus they alone will a) develop the economies of scale, 2) amortise this 2nd or 3rd generation equipment much of which may be proprietary or protected by IP. They alone will generate the huge profits with which to gobble up smaller competitors and their IP. I could go on, but the point is that their position is ablolutely unassailable and barring some disruptive technology, they have a continuing franchise and the only franchise. Sales volumes will grow exponentially and now because fiberoptic networks are only now moving beyond the long haul connections--yet it is clear that they must do so fast to support data (net, video). Call it what you want. I call JDSU a KING WITH THE MIND OF A GORILLA. Its a slam dunk and has staying power that will last for years absent some disruptive technology. JohnG