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Technology Stocks : Lightpath Technologies: LPTH New WDM player -- Ignore unavailable to you. Want to Upgrade?

To: Peter Sherman who wrote (924)	5/1/2000 2:46:00 PM
From: Curtis E. Bemis	Respond to of 1219

DIA : DIAMONDS TRUST,SERIES 1 (AMEX)

To: Peter Sherman who wrote (924)	5/1/2000 2:49:00 PM
From: OWN STOCK	Respond to of 1219

OK, everyone cool down...Auric: As with any new company, it is impossible to establish compelling financials (except in the business plan)...what with paying off the initial debt you get into, even with all that VC money.... So the real questions are: 1) does the company have a superior product? 2) are their customers willing to pay a healthy premium over cost for the enhanced performance? 3) are there a lot of customers now, and potential for lots more? 4) do they own the IP, or are there other big barriers to competition, and 5) how much of the COGS is labor versus materials / automation... A really interesting question is: 1) will the superiority of the product allow increased sales: ie is it an enabler to the telecomm wave? I will try to answer, and please if anyone has better information, do not hesitate to respond... 1) From what I have heard, the LPTHA collimator cannot be beat in terms of lowest insertion loss 2) This is a double edged question. The direct answer is a weak yes as far as price is concerned, but the answer to the fifth question is how to handle it...and they do have customers... 3) The answer is yes, especially as the Telecomms move toward optical switching in a big way. 4) From discussions with the company at the last tech conference, the entire process is automated or soon will be...so the cost is as low as it can get, assuming the equipment costs are not sky high...(my assumption)... 5) They appear to own the IP... The key question in my opinion is the last: 1) IMO, optical switching is the key to future bandwidth. And it has to be done with low loss, or the costs will go sky high, since switching tends to grow as some power of the number of "ends" in the network, and if you add amplifiers... Anyway, my "play" is SDLI for the pumps for the amplifiers, and these guys for the collimators for the MEMS and I am looking for a MEMS play too...suggestions welcomed.... All the above is my own opinion, based on my experience, some research and discussions with Lightpath personnel... -Own