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No. of Recommendations: 7
Hi Joe (HoF):

You wrote:
"I have been watching PUMA since the March drop. Didnt commit though I saw the upside. I am torn between PUMA and INSP by buying GNET. Both have excellent upsides though PUMA may be farther away.

Which rule applies here?
#2 Application software, buy in the bowling Alley
I'll concede its in the bowling alley....
#3 If its enabling software, buy at the beginning of the Tornado"

Let's compare INSP with PUMA:
http://quote.yahoo.com/q?s=INSP%2C+PUMA&d=t

INSP has a $6.6 Billion market cap while PUMA is much smaller at $885 Billion. Both companies have similar charts, with the more recent weakness probably due to Nokia's preannouncement.

INSP is playing a Godzilla game trying to aggregate content from the most big content providers (so far it has been very successful), but there is not discontinuous innovation there. PUMA on the other hand is playing a Gorilla Game. PUMA has a discontinuous innovation in its MAP platform that includes Browse-It™ a software program that translates web content on-the-fly into a form readable by wireless devices. PUMA's MAP suite has an open proprietary architecture (the same way that MSFT has one with its Office suite, although PUMA lacks the leverage that control of the OS brings). PUMA also competes mopre directly with INSP in the content aggregation area with its Intellisynch.com portal. AETH and PHCM also compete with PUMA but IMO their technology is way behind Pumatech's. With Pumatech's MAP you can bypass INSP and get your content unfiltered directly from the web. PUMA's value chain is very strong, with such partners and customers as NOK, PALM, NTTDocomo, its software works with all the major wireless platforms iMode, PALM, Symbian/Psion, etc. PUMA is also very strong in the enterprise space.

To answer your question directly, PUMA is in the bowling alley, with a full tornado about 2-4 quarters away as the 3G rollout gets going. It may already have a tornado in Japan where the wireless web is much further ahead than in the U.S. There is a lot of competition and risk with PUMA, but IMO it does have the best technology solution. The correct GG strategy would be to buy a basket of wireless infrastructure players: PUMA, INSP, AETH and PHCM (can substitute GNET and SWCM to get the merger/arbritage premiums). IMO PUMA and PHCM are the Gorilla Game candidates, while INSP and AETH are really Godzilla Game players.

Disclaimer: long PUMA

Good luck with your selection, Joe, the game is still early so there is no rush, do your DD and buy the best players.

-xerohype
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