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

To: Greg Hull who wrote (25838)	6/4/2000 10:15:00 PM
From: DownSouth	Read Replies (1) \| Respond to of 54805

Greg, I am interested in the FC topic. I admire the fact that you have obviously built yourself an excellent base of understanding. One question that you did not raise that I would love to hear from you--What are the threats to FC? Are there disruptive technologies on the horizon that will affect FC adversely in the near future (GB e-net, for example). Will BRCD be able to thrive in the face of such disruption? This is not a loaded question, but I have avoided investing in the FC tornado for that fear. Thanks.

To: Greg Hull who wrote (25838)	6/5/2000 1:43:00 AM
From: Bruce Brown	Read Replies (3) \| Respond to of 54805

RE: Fiber Channel Nice post, Greg. You did bring up one important issue in your post which is certainly worthy of discussion for more than the few who do happen to follow fiber channel. What is that issue? The mention of McData and fiber channel directors. As we all know (should by now anyway), EMC will be spinning of McData in an IPO. All of us that own shares of EMC will be given shares of McData within 6 to 12 months post IPO in the form which is treated as a stock dividend. (Mike, correct me if I'm wrong on the way that form is treated in terms of taxation and delivery.) At this point, I doubt we have any way of breaking down the financial health of a separate McData business model. For that, we will have to wait. Business model evaluation data aside, we should discuss the pros and cons as to whether or not we would want to hold shares of McData in the FC director space. In terms of Brocade and following the Cisco trail, once again it is key to look at the IOS. This is where Paul Johnson targeted Brocade as being in a gorilla game. As you know, Brocade management has mentioned that the IDC data for projected Fiber Channel hub and switch revenue is much too low. This is what caused management to predict triple digit growth for their business going forward and said this would be accomplished using conservative estimates. As in any gorilla game, it is certainly hard to predict the future. Threats are always there, for any game. We can certainly look at games in retrospect to see how things played out, but that doesn't help us predict the future of a current game. Regardless of that, I would be interested in your thoughts about EMC shareholders decision as to what the underlying value of the McData shares might be as long term investments in the space. BB