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Technology Stocks : Genesis Microchip (GNSS) -- Ignore unavailable to you. Want to Upgrade?

To: The Reaper who wrote (829)	2/18/2001 12:23:38 AM
From: trilobyte	Read Replies (2) \| Respond to of 1277

Hey Kirby, nice to hear from you --thanks for your quick reply to Go Up Up's questions. I'll repost your answer on the Yahoo thread as it brings into the discussion some interesting points that were not discussed, especially concerning the financial requirements that must satisfy a company in order to be awarded the gorilla medal... >The first problem is that revenue growth is not in >tornado. Agreed, but I think many of us are anticipating strong revenue growth to begin, most likely starting in the June quarter unless the US economy completely goes down the drain. So we're anticipating the tornado... >The second problem is that revenues don't reach even $100 >million yet. The G & K'ers want at least $1 billion in >sales for consideration really? that's a bad criterion as it eliminates most niche companies. Very few companies have the potential of growing revenues 50 times, say, when they reach 1 billion in sales... >The third and most important criteria has to be it's >stranglehold on the enabling technology for the FPD market. >Does it have IPR that is needed for the manufacture of the >graphics chips for FPD. If it does, then we should see a >value chain developing with other players licensing IPR to >enter this business. I don't see any of that yet. I agree, although Go Up Up, I think, thinks differently. >All this being said, I think we have a royalty game. GNSS >will be a King when it does have >50% market share. The >term "Godzilla" probably doesn't apply here either. The >barriers that prevent customers from choosing other >vendors are not significant enough yet. We continue to agree on the King label... However, I disagre about barriers. At the moment, GNSS's dual interface on a chip solution has established a pretty high fence for the competition to leap over. It's probably a barrier, unless the PXLW, SAGI, SIMG of this world come up with a similar solution quickly --their two chip solution can't compete due to cost disadvantage. I think it's pretty safe to assume that GNSS has over 50% of the LCD monitor controller market at the moment following their high volume wins at DELL and NEC. They already had 45% prior to that and have apparently displaced SAGI from NEC 15" monitors. Yeap, compared to most tech stocks (especially large cap high tech stocks) this year, GNSS has done very well, although I can't complain about several of my other small positions (IKOS, OVRL, XTEL) since the begining of the year in which I sought refuge from the market storms. bye, Trilobyte