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

To: JRH who wrote (1837)	5/10/1999 2:02:00 PM
From: Uncle Frank	Respond to of 54805

>>Uncle Frank, being in the semi business, what are your thoughts on RMBS? Justin, I'm no expert in this technology (my company specializes in legacy dram products), but I have some concerns about the long term potential for rmbs based on comments I've gleaned from my marketing guys and others in the bleeding edge of memory technology. My sense of it is, 1. rdram is an evolutionary step rather than a discontinuous innovation. 2. rdram has been defined for about 2 years, but there is no volume useage yet. 3. The large memory manufacturers are not committed to the technology, and are looking for alternate ways to achieve similar performance which would not entail royalty payments to rmbs. Congratulations on your qcom purchase, Justin. My wife bought in today as well at 217, well below my last purchase price of 222 1/2. Not that she'll ever remind me that she is a better shopper <g>. Frank

To: JRH who wrote (1837)	5/10/1999 6:15:00 PM
From: gdichaz	Read Replies (2) \| Respond to of 54805

To JRH: Justin, thanks for thoughts on RMBS as a potential gorilla. Following up on Uncle Frank's suggestion that you speak for yourself re my question on gorillas in waiting on the Gorilla and King Watchlist you handle, do you have any others you see a potential full fledged gorillas? Chaz too.

To: JRH who wrote (1837)	5/10/1999 6:30:00 PM
From: gdichaz	Read Replies (1) \| Respond to of 54805

To JRH: Justin. In following fiberoptics as carefully as I can, I have become more and more convinced that NT is the leader in overall fiberoptics networking systems supply. UNPH is a king in fiberoptics components but NT is much broader and moving fast especially with its new entry which MSFT is testing companywide. May I nominate NT as a possible Gorilla and King Watch and Wait candidate in fiberoptics system supply? See below: Talk : Communications : JDS Uniphase Corporation (UNPH) To: Kent Rattey (308 ) From: Bulldozer Monday, May 10 1999 2:56PM ET Reply # of 309 Not that this is news to any of you beret heads - but follow the customer and you can see how well its suppliers are doing - especially encouraging is the metro market insight at the bottom... 01:42pm EDT 10-May-99 SoundView Financial Group (Truc Do, 203-462-7217) NT Nortel (NT) - Company Update Nortel (NT) $71.19 Strong Buy May 10, 1999 (FYE Dec.) F98E F99E F00E Curr. Last Yr. Ago Revenue ($M) 17,981 22,000 25,462 5,200 4,418 4,156 EPS $1.85 $2.35 $2.86 $0.51 $0.33 $0.39 Old Revenue Old EPS Our research continues to indicate that demand for long-distance backbone capacity is accelerating and Nortel continues to expand its leading share in this fast-growing market segment. In our view, Nortel has not received a lot of credit for its leadership in optical networking to date, but we believe that is changing. We continue to recommend Nortel based on its optical leadership. As the company is increasingly viewed as the leader of optical networking, we expect Nortel's valuation to improve significantly in the next few quarters. Comments: With the recently announced 160-channel DWDM (OPTera 1600) product, Nortel now has the leading product in the three major components of the backbone network (OC192, DWDM, and ATM). Recent announcements by Nortel with MCI WorldCom, Microsoft, Colt Telecom, and TeleGlobe have significantly raised the profile of Nortel's strength in optical networking. We have been positive on Nortel based on its strength in broadband and the accelerating demand for backbone bandwidth. The recent announcements have begun to confirm our story, we expect Nortel to be increasingly recognized as the leading supplier of optical networks for the rapidly growing Internet backbone. OPTera1600: With the recent introduction of the 160-channel OPTera 1600, Nortel now has a significant lead in both OC192 and DWDM. We view this recent announcement as very positive and will position Nortel well to benefit from the explosive growth in backbone bandwidth demand. We believe that OPTera 1600 will receive significant market acceptance in 1999. In addition to MCI WorldCom as the first commercial deployment of OPTera 1600, Colt Telecom announced today that it would deploy OPTera 1600 in its Pan-European network. Our research indicates that MCI WorldCom will deploy OPTera 1600 in 1999 and view it as a key product in its fast-growing networks. We believe that UUNET Internet traffic has grown about 10 times in 12 months. OPTera Metro: Nortel's recent acquisition of Cambrian appears to have paid off faster than we expect. In our meeting with Nortel's management last week, CEO John Roth expects to see some revenues from its metropolitan optical products (OPTera Metro) later this year. This is faster than most industry analysts expect. Microsoft's announcement today about its trial of OPTera Metro and OC192 in its internal network appears to indicate that the metropolitan market is moving much faster than anticipated. We believe that Nortel's acquisition put the company in a very strong position to benefit from growth in metropolitan WDM market. Chaz too