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wifi stock boom

  1. 203 Posts.
    GCN may well become a leader stock in the imminent WiFi stock boom,refer attached OZ Equities report.
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    SPECIAL

    Special Report
    ESSAY BY RICHARD LI - "WI FI IS THE NEXT BIG THING"


    Our note: Richard Li, managing director of Sino Securities, believes Wireless Fidelity (WiFi) is the next big thing.
    He points to his track record - he was early into the shale oil boom, the gold boom, the China stock boom and the internet boom (He adds the trouble was that he never sold out fast enough when the booms ended).
    He believes the next big boom is WiFi.
    While there are so far only 100 "Hot Spots" in Australia (where a pocket PC with a WiFi card can be connected and material downloaded), he believes this is set to grow exponentially.
    Meanwhile WiFi Pocket Pc's start at around $A800 but are reducing. In the US they already retail for $US299. To add a WiFi card costs another $100.
    And, Richard Li says, Sino Securities majority owned company GoConnect's m-Vision leads the market in supplying content for WiFi pocket PC's.

    THE NEXT BIG THING IS WIFI
    By Richard Li

    There has been a lot of media publicity on WiFi, with another article in the May issue of Fortune magazine and today's Australian IT.
    Just as in the late 90's, all companies with a whisper of internet went through the roof, the same will happen here.
    With Intel spending US$300 million just to market their Centrino chip for WiFi connection for the laptop, there is now serious money by major businesses to come into this sector. The beneficiaries will be application providers such as GoConnect's m-vision that is able to deliver the first batch of compelling consumer applications to drive the average consumers to the WiFi hotspots.
    The Centrino chip from Intel can be likened to the picks and shovels of a gold mine , .a recent catalogue from Harris Technology is full of WiFi equipment for sale.
    But the real gold will be the applications that these WiFi networks and the laptop or Pocket PC devices deliver.
    The real money will be in the killer application that can bring the consumers into the hotspots.
    In every cycle, there will be a sector of the market that goes up several hundred times. We had the Poseidon boom for nickel stocks, the oil stock boom in the 70's, the Rundle Twins for shale oil in the late 70's, the gold sector in the 80's, The China stocks of the 90's, the internet/telco sector
    in late 90's. The common characteristics of these sector booms are: the product must make sense, blue sky numbers can be extrapolated, involvement of big companies (such as Exxon with the Rundle Twins), either real or at least perceived demand and ever growing demand, and a little bit of mystery.
    WiFi fits the bill. Internet is an everyday affair already . Intel (Centrino chip), Cisco (WiFi phone) and T-Mobile (biggest WiFi hotspot operator in the US) are just a few of the big names already in the WiFi space. Phenomenal growth you certainly have already.
    Intel predicts an 8 fold increase in hotspot numbers this year internationally. Yes, 8 fold to 80,000 but numbers I read recently suggest Asia alone may have several hundred thousand hotspots. Based on numbers recently suggested by the local players, Australia is likely to have 2000+ hotspots in 12 to 18 months from the existing 100+.
    Optus alone will add 500 so they say. If you ask now, which WiFi stock you should be buying, many brokers do not even know what WiFi stands for.
    I do remember that even after the Rundle Twins had gone from 20 cents to $10 plus, many people still did not know what shale oil was.
    Never mind the ignorance, brokers probably started recommending the Rundle Twins at $50 a share. That is the nature of the sharemarket.
    WiFi makes a lot of sense, the big boys are getting into the sector, just to "expand their footprint" at the moment.
    We heard this all before. They need to capture market share, never mind the business case yet. The small companies with the consumer applications will be the ones to provide the leverage. I do not remember anyone buying Exxon to buy a piece of shale oil.
    Damn it, you bought the Rundle Twins. If you missed that run, you could still buy the Esperance, the Greenvale, the Alpha Resources.
    Get set for the next WiFi sharemarket boom!

    The leverage from present price of 7c,could provide an extraordinary result.
    SEARAY




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