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

To: tripperd2 who wrote (22463)	4/10/2000 12:20:00 AM
From: wopr1	Read Replies (2) \| Respond to of 54805

Future Assault on JDSU's margins: All King's margins can be assaulted. This week, Bookham Tech has its IPO. While not an immediate threat, its something for JDSU owners to keep an eye on. Bookham is able to create optical components from silicon that should reduce cost and Time to Market using Active Silicon integrated Optical Circuits (ASOC). ASOC technology is the fabrication of integrated optical components from a base material of silicon . . . Consequently compact and versatile integrated optical components can be produced in high volume and at low cost. bookham.com Contrast this process with JDSU where many components are made from hand. From a recent article, Most [employees] end up doing exactly the same thing: using identical sets of tweezers, vises and microscopes to connect pieces of fiber with the miniature filters that mix beams from different lasers. The company would use robots if the glass weren't so brittle. cnetinvestor.com To a lesser extent, Lumenon (LUMM) represents this type of mass manufacturing threat of optical components. lumenon.com JDSU, through ETEK, has acknowledged this potential. Recently ETEK made a multi-year agreement with Bookham for the design, manufacture and distribution of AWG DWDMs. quicken.com Further, Bookham has both INTC and CSCO as equity investors. edtn.com What do fellow JDSU owners think of this development? I am considering purchasing some Bookham if for no other reason as a hedge against the potential assault on JDUS's margins. Welcoming all responses . . . -wopr P.S. FWIW, I read on a message board that Gilder thought Bookham could be a threat to JDSU within 5 years. I don't know if Gilder said this or not.