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: Apollo who wrote (17074)	2/3/2000 12:20:00 PM
From: DownSouth	Read Replies (2) \| Respond to of 54805

EXDS vs CREE Apollo, for me CREE is the winner: Services versus Product EXDS is a service provider. Can't be a King nor a Gorilla, imo. Margins will erode as the market expands and competition appears. CREE is a product company. Can produce high margins as cost of production goes down and volume of production goes up. CREE is either a King candidate or a Gorilla candidate. Our problem is in identifying the chasm and the time of tornado. CREE is creating value chains in multiple tornado like markets. (I won't repeat the facts here.) Perhaps, just perhaps, the run up today signals a chasm crossing event that we will learn about soon. Pure speculation on my part.

To: Apollo who wrote (17074)	2/3/2000 12:21:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>> Are people investing in Cree because it has better growth potential, has demonstrated earnings,or because it is sitting at a smaller market cap? Or are they investing in it because they believe it is a gorilla candidate? Other reasons? What is the intellectual thought process that helps people decide? I never considered exds for my portfolio because it has a transaction based business model and is not eligable for GG analysis. It belongs in Teflon's b:b universe - the Godzilla Game, not the Gorilla Game. Plus, I never invest in unprofitable companies. Never. Cree actually makes things that are very difficult to produce, and gains a fine profit doing it. Competitors have to have technical acumen to muscle in, not just money. Smart folks like Unclewest and Fatboy have given me a great start in understanding them by sharing their dd. If their patent portfolio proves out, they may have some pongoid potential; if not, they have a shot at being Kingly for a reasonably long period. uf

To: Apollo who wrote (17074)	2/3/2000 1:19:00 PM
From: FLSTF97	Respond to of 54805

EXDS vs CREE I prefer CREE because it has the potential to become the fabled beast. IMO EXDS has no chance which means I would have to watch it incessantly to determine when to exit. Furthermore, I don't like the business model which in my simplistic interpretation is to lose money investing in the infrastructure to provide a service and hope to withdraw an annuity-like revenue stream later. The down stream pricing of the service is at a high risk since I don't see the primary barrier to entry, $, as being all that hard to come by. Fatboy

To: Apollo who wrote (17074)	2/3/2000 1:35:00 PM
From: mauser96	Read Replies (1) \| Respond to of 54805

Stan, my reasons for investing in CREE include all the ones you mention (except perhaps market cap). The key reason is that I believe SIC offers some physical properties that can't be achieved with other materials no matter how clever the engineering. For instance, nothing anybody can do to plain doped silicon will allow it to withstand the temperature range of SIC. I'm still trying to comprehend the full implications of this, and find that to do so I'm going to have to understand the underlying physics better. To this end I've found a great book "the Quantum Dot" by Richard Turton - quantum mechanics sans math. At my present dunderhead rate of progress it may take quite a while for all this to sink in <gg>>.Also there are a lot of references in the CREE thread. When looking through a tools catalog I found another use for SiC . An ad for a 4 hp semi trash pump says "SiC mechanical seal lasts many times longer than ceramic seals because it's far more resistant to corrosion, wear and heat" These are physical properties inherent in the material, and CREE controls the material. Another thing that attracts me to CREE is that a big company like GE thought enough about the potential to invest a lot in R&D, fail,and then invest pension money in CREE. It's very early in the CREE story, and still risky at this point.