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

To: Eric L who wrote (31949)	9/20/2000 10:51:48 PM
From: sditto	Respond to of 54805

<<I happen to be one who thinks that a King can become a Gorilla.>> I agree with you in essence but some semantics are necessary. A King can always be on the lookout for potential tornados where its power can be used to establish Gorilla control. This is most likely to happen when the King makes components which become an important part of an emerging architecture. JDSU makes a wide variety of optical components. These components are being assembled into subsystems which have architectures (e.g., tuneable lasers, etc.) which then become part of larger systems which have architectures (e.g., optical switches, drop/add multiplexers, etc.) which then become part of larger networks which have architectures. Each of the optical components made by JDSU require significant R&D in both basic material science and manufacturing techniques which result in high barriers to entry. Combining each optical component into working subsystems requires more of the same. JDSU is becoming positioned to control the basic architecture of many of the subsystems in the optical systems of the future. For a very good non-technical discussion of what these systems and subsystems might be I highly recommend the link posted earlier from americasnetwork.com The article concentrates primarily on the system manufacturers and network providers developing optical solutions. JDSU is the ultimate "pick and shovel" play in the optical space and will get even more attractive as it develops control over emerging subsystem architectures.

To: Eric L who wrote (31949)	9/20/2000 11:07:48 PM
From: DownSouth	Read Replies (4) \| Respond to of 54805

No, Eric. A King cannot become a Gorilla, except in a different market or with a different product. No one has ever posted a convincing case for JDSU being a Gorilla. The only half-way convincing point I have heard is that JDSU has a lock on the engineering talent. But that isn't convincing, cause those folks can leave anytime they want. I would love to be convinced that JDSU is a Gorilla. C'mon someone. Convince me!!! Its my 3rd largest holding, behind NTAP and....(tada!) QCOM.