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

To: DownSouth who wrote (20381)	3/17/2000 12:44:00 AM
From: mtnlady	Read Replies (1) \| Respond to of 54805

"They have patents for manufacturing processes, but the products fulfill open, non-proprietary standards. Anyone can build them and not pay JDSU royalties." I don't want to argue here but this just doesn't sound right to me. I doubt JDSU only patents "manufacturing processes" and "anyone can build them and not pay JDSU royalties." My brother is a EE engineer and holds several patents (I hold a patent myself) and his companies hundreds of patents. Rarely do they patent a manufacturing process. They patent their 'creation'/design etc. While it's true mfg. processes are patented (e.g. CREE patented processes for SiC mfg.) most patents are for some new and exciting 'widget' they have developed. My original statement still holds however. I do not (yet) consider JDSU a gorilla until we see clear signs that they have patented a discontinuous invention that the industry then builds a value chain around. I.E. My take is that they are designing and building (and patenting)devices that meet a customer's spec and not creating something altogether 'new'. Do I believe they (jdsu) can make this 'leap'? Sure. I am of the camp that in certain conditions kings can morph into gorillas. JDSU sure spends the R&D monies to make such a leap.

To: DownSouth who wrote (20381)	3/17/2000 1:02:00 AM
From: LBstocks	Read Replies (1) \| Respond to of 54805

Thanks for the informative post on JDSU. I know that this has been kicked around here before, but I think many on this thread overlook the extremely large barriers to entry when analyzing JDSU's status. I feel that this makes JDSU quite unique and very difficult to categorize for purposes of the gorilla game. Because of various factors, including the stress placed on JDSU's products (e.g. submarine environment), Belcor certification is required for most of JDSU's products. In many cases, this means years (as many as five years) of rigorous testing. Building the products is one thing (which is also extremely difficult particularly considering that JDSU employs much of the available talent), but getting the product certified is a whole different game.