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Excellent post, Scott (Tinker).

JDS Uniphase is in royalty game as we know it sitting on the throne as the King. I am comfortable holding a stock in that position at this early point in the technology adoption life cycle. Likewise, I am comfortable holding another King - EMC - as well, but for the growth reaons in the data storage needs that the Internet has created.

Plus the value chain really doesn't care if a component for the fiber-optic pipe is made by JDSU or by Hank's Fiber Optics 'R Us. As long as the thing works.

I enjoyed a good laugh on that one. The huge barriers to entry, luckily, will prevent Hank from ramping up and being too much of a threat. Hence, my earlier moat around the castle comment. In this growth phase of the adoption life cycle, several players will perform quite well and investors need to be keen on watching the sector. As Tinker said, I will be on the lookout for the point in the life cycle where the growth begins to level off and slow and evaluate at that time my decision on whether or not to sell and move on to a faster growing investment.


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