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Technology Stocks : Meade Instruments Corp MEAD -- Ignore unavailable to you. Want to Upgrade?

To: Gary105 who wrote (81)	3/26/2000 10:59:00 AM
From: timers	Read Replies (4) \| Respond to of 175

MEAD article says....from the article.....mead make only a "piece" of a dish that costs ONLY $150. A PIECE!!...only for downtown businesses. They better be selling their stock now. They aren't gonna make squat from this deal other than what they've already made on their stock. //////The heart of the window sill units cost only $150 to build. Shares of Meade Instruments Corp., of Irvine, Calif., soared 77 percent last week when that company got the nod to build pieces of those units, for assembly at TeraBeam's 100-person research, development and manufacturing facility in Redmond. seattlep-i.com

To: Gary105 who wrote (81)	3/27/2000 1:36:00 PM
From: moat	Read Replies (2) \| Respond to of 175

<<Message #81 from Gary J. Goetz at Mar 26 2000 9:25AM Order of magnitude calculation of impact: Assume 100 M people work in cities Assume ultimate terabeam penetration is 25M (25%) Assume average size of organization is 250 people Therefore number of window units = 25M/250 = 100,000 Each unit costs $150, assume mead's share is $40 (ie about 1/4) Then total potential mead sales = $40 x 100,000 = $4M Assume this is spread out over a few years and results in incremental sales of $1M/year Be liberal and assign a PSR of 10 to this. Therefore incremental increase in shareholder value should be $10M or $1.25/share. The above is an order of magnitude (ie most likely good within a factor of 10) estimate. All imo, Gary>> Good thinking Gary. Couple other datapoints: 1) Meade's lenses are likely to be in the hubs, 2) We don't know the cost of the lenses in the hubs, and 3) There are a total of 700,000 office buildings in the U.S. Also, TeraBeam said anticipated monthly revenues per customer are $6,300/month. The number of businesses needing this type of service (gigabit speed) is not a huge number. Nonetheless, your way of thinking (analysis) is an excellent way of getting our hands around the overall size of the opportunity to Meade.