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: tekboy who wrote (21541)	3/28/2000 12:59:00 AM
From: tinkershaw	Read Replies (3) \| Respond to of 54805

"present in absentia"... I'm blushing:-). I will have to check my notes and may be able to resolve this very compelling and important issue shortly. Quick update on LHSP which was well presented by GaryX: boards.fool.com LHSP is buying out its largest competitor Dragon. Dragon is approximately 1/10 LHSP's size in revenues and the purchase price of $587 million is approximately 1/10 of LHSP's market cap. I did a little "Peter Lynch" this weekend at Best Buy and checked out the consumer voice recognition market. Dragon and LHSP equally dominated the shelf. IBM's product was practically vanquished, a small little thing overlooked. With this purchase, if the Best Buy trip was any indication (and it was more rushed than I liked because my wife's interests was more into digital cameras and not investing DD) LHSP should dominate the consumer market. I was also pleased to see a Microsoft Money product (forget the exact title) which displayed proudly on its box cover LHSP inside (listed the name of the product and trademark L&H). Impressive. I might have to do some research but could it be possible that Herb Greenberg of thestreet.com is a greater contrary indicator than even the renowned lead columnist of Barrons? Herb is called for shorting LHSP around $30 if memory serves (will have to check the exactly amount, might have been in the 60s or so) he is also infamous for dissing CREE and advising readers to short CREE when CREE was around $60 I believe. His rationale was the C3 contract. Of course anyone who did a smidgen of looking under the hood could tell you that C3 is practically irrelevant to CREE's success, even in the worse case scenario of C3 totally defaulting on their contract (C3 being the moissanite business). Demand for CREE's SiC is currently so strong that its customers are on quota and CREE is increasing capacity 3 fold + (as news of progress towards 4" wafers from 3" has been heard over the last few weeks). But gee, a "journalist" giving in-depth research the shaft. NOTE: LHSP is building a fine value chain, does now seem to be the indisputed leader in its field and across most disciplines in the computer/AI voice markets, and at least Tornadic market expansion is predicted over the next several years. I am not convinced that LHSP is a Gorilla Candidate, or if even its market will be anything but a Royalty game, but at this time it seems like the only pure play in the field capable of winning this market. I have therefore (in my non-Gorilla, venture capital portion of my portfolio which I'm devoting 30% to, adding to my initial LHSP Jan 2002 LEAP purchases). Of other LHSP note for those interested in balance sheet items, over one-half of LHSP's revenues are receivables. DOS have been coming down and now stand at 98 days. Much of the high receivable count may be attributable to the acquisition binge. However, since LHSP is a Belgian company it doesn't have to comply with GAAP in its reporting. All in all though, except for what may or may not be signficant balance sheet items (as Seibels receivables were quite high and outgrowing revenues not too long ago - which is what kept me out of Seibel) LHSP is looking like a fine speculative play. Not anywhere near a Gorilla - if a Gorilla it can ever be, but seemingly in an enviable market position nevertheless. Tinker