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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (50591)	4/17/2001 8:34:13 PM
From: Jason W	Respond to of 57584

Racing to set the standard is good. But you won't set the standard if you arrive to market when a half dozen other companies do, or if your technology is priced too high for the market. That is true. Owning the intellectual property for a standard, a la QCOM, INTC, or most likely RMBS, is the place to be. Especially when it is in an area experiencing hyper growth. Why EK didn't buy SNDK several years ago is a mystery. EK buys CF from SNDK, as their digital cameras use Compact Flash. Regarding SNDK, and without trying to jam one of my favorite companies and largest holdings down your throat:-) : SNDK owns IP for controller technolgy that other CF producers must pay royalties to use. This advantage, along with SNDK's new fab plant in Virgina gives SNDK a competitive advantage over other flash manufacturers. You see, SNDK makes money when others sell flash, and more when they sell their own. SNDK has been less than forward telling the full story about who pays what, royalty wise, so this is far from a slam-dunk investment. Regarding Sony, and their Memory Stick...Sony is choosing to go it alone, and does not have their format in any other manufacturers cameras. So, while their cameras are popular, the Memory Schtick has little chance of becoming a standard. It does help eat up the current over-supply of flash though, which indirectly helps SNDK right now. I still blame "lack of vision" for fabulous companies like Eastman Kodak failing to establish itself as the clear leader in digital photography. Me too. Jason W