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Technology Stocks : Harmonic Lightwaves (HLIT) -- Ignore unavailable to you. Want to Upgrade?

To: Hiram Walker who wrote (1958)	3/10/1998 11:26:00 AM
From: Smilodon	Read Replies (1) \| Respond to of 4134

The PC/Compaq/Intel problem is good for HLIT. The reasons given for the Compaq and Intel short fall is a stuffed distribution channel and the emergence of the lower margin sub $1000 PC. The sub $1000 PC is growing, not so much due to stimulated demand at the low end (which it was designed for) but instead due to canabilized sales of mid range PCs. Customers (even business customers) can buy a low end, cheap PC which can run all leading software just fine. So how does this help HLIT? The new applications that are demanding better hardware capabilities are internet applications. They don't need more processing power, they need more bandwidth. And until we get more bandwidth from either cable or DSL, we don't need a lot more processing power. This is the reason for the G.Lite standard for DSL and was also the topic of Bill Gates' address to the Montgomery Tech conference in January. We have a lot of major players with a vested interest in solving the bandwidth problem. Everything I hear leads me to believe that cable will be the dominant solution over the next few years. ADSL has promise but the RBOCs are so slow (and ultimately benign competitors for the cable operators). Thats why I am long HLIT and short WSTL. I think we get paid for our efforts in this stock in Q3 or Q4. P.S.: I like New Media/HLIT's new router product. That acquisition looks like a good decision.