To: Paul K who wrote (381 ) 4/24/2000 11:10:00 PM From: Paul K Read Replies (1) | Respond to of 417
ILNK: The Importance of Disruptive Technology and Lower Prices(6) by: Glotech (49/M) 4/24/00 6:07 am Msg: 26976 of 27072 The investment lesson learned from the success of Nucor, Dell, and Amazon is very clear. These companies used innovative business model, fueled by the disruptive technology, to vastly under-price their competition. I call these kinds of opportunities "Pirate Profits" because the competition never knows what hits them. One day they wake up and their markets are gone-poof. The "pirate" firm has stolen their customers-with innovation and lower prices. And, when you see how this works you can take full advantage of the coming opportunity in telecommunications. Congress opened the floodgates of competition in the telecom market. There are a few "pirate" firms and there are many disruptive technologies. And Wall Street remains almost complete oblivious to the opportunity, fearing the debt loads, high PE and falling prices? Imagine you knew back in the 1970s, like Gordon Moore and a few others did, that computers would always grow faster, cheaper, smaller and would double in power every 18 months. If you'd watched the technology changing, you could have seen that companies were always building computers that were faster, smaller and more powerful. And that would have translated into enormous investment profits as you safely bought companies like Intel and Dell despite their high PE ratios. The good news is that disruptive technology is emerging again in today's modern telecommunications industry. And this trend of growth promises to be even more valuable than the trend of computer growth, which made billions for some investors. This isn't speculation-some of us are already making good money with companies in this sector. Let me explain... The computer revolution of the last 25 years is really just the start of a much larger trend towards global interconnectivity. Bandwidth capacity around the world-the amount of data that can travel at one time through the world's communications networks-is more than doubling each year. That's more powerful growth than computers have ever had (remember, the processing power of computers doubles every 18 months). The faster rate of growth in telecommunications technologies means that eventually computers will be able to communicate even better than they compute. And there's a secret to this trend towards global interconnectivity. It's a change as powerful as Gutenberg's printing press. This new interconnectivity will change the way people all around the world live their lives. Your PHONE [and that includes cell phones and Palm Pilot ] will replace your computer as computer networks become more and more a part of everyday life. Here's what you need to know right now: "we live in a world of shrinking computers and expanding communications." Looking back over long periods of time, you can see that human progress can largely be measured by our increasing ability to compute and communicate. And today the ability to perform these two crucial functions is advancing quicker than ever before. All of this change is a tremendous opportunity for bold investors. Investors who own the new superhighway to global commerce-the new global computer networks-will be among the richest people in the world. continued......... Glotech