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

To: FLSTF97 who wrote (17493)	2/8/2000 10:40:00 AM
From: DownSouth	Respond to of 54805

CREE bowling pins Fat boy, good post, as usual, but something in your post bothers me: I think we can assume that LEDs are the head pin and they are clearly selling them into that market segment. Bowiling pins are not products--they are market segments. LEDs are not a market segment--they are a product. Bowling pin market segment examples are the auto industry, cell phones, PCs, etc. So we are looking for a tornado for the LED product, following the bowling pin strategy in process now. Then we will look for a tornado for SiC based semiconductors, following a yet to be defiend bowling pin strategy. But there is a chasm to cross yet. Does this make sense to you, and if so, how does it affect your conclusions?

To: FLSTF97 who wrote (17493)	2/9/2000 7:47:00 PM
From: 100cfm	Respond to of 54805

Speaking of Uniroyal, picked this up from soundview. Uniroyal Technology (UTCI) Price: $41.94 Strong Buy F00E: $0.06 F01E: $0.52 UTCI reported a higher top-line number of $48.9 million against our $48.6 million estimate for a gain of -0.3% Y/Y and -5.9% sequentially. EPS was ($0.03), which was 0.02 better than our estimate of ($0.05). Uniroyal Optoelectronics (UOE) ramping up quickly in high brightness light emitting diodes (HB LED) sales with design in activities accelerating. The company indicated there were 40 customers currently qualifying the HB LED die for various applications. UTCI has started a second shift in the UOE factory and will go to a third shift in May 2000. Phase 1A expansion of the company's facility is complete with Phase 1B expansion doubling current capacity this July 2000. Going forward, we see continued strong demand for the HB LEDs in a market that is currently capacity constrained. We look for continued acceleration in HB LED sales as the company ramps into full volume production the second quarter (March). We maintain our strong buy rating with a price target of $55. Does this change the outlook for cree any? Personally I like the fact that another company is going balls out to ramp up capacity to meet demand. That is a good sign of a tornado forming. The question remains is cree's competitive advantage enough to give it gorilla status. 100