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-  THE FRIDAY LETTER  -

(emailed weekly, from Gilder Publishing,
for friends and subscribers)

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 | http://www.gilder.com/ | Issue 308.0/August 31, 2007

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HEADLINES:

-  The Week / Gilder: Semitool’s Solid
-  Friday Feature / Net’s Pipes Can’t Keep Up with YouTube Age
-  Friday Blogger Bonus / Israeli Stocks
-  Readings /


SPECIAL FRIDAY LETTER OFFER


Gilder/Forbes Telecosm 2007 CONFERENCE

Hosted by George Gilder & Steve Forbes | October 16 – 18
The Sagamore Resort | Bolton Landing, New York

 
OPENING NIGHT PROGRAM
-  Eco-Investing: Environmentally friendly technologies tinting the Telecosm green
-  Which Way Does the Wind Blow? (Global Warming and Climate Change:
   Scientific fact or Academy Award winning propaganda?)

Register at a discounted rate online
today
: http://www.telecosmconference.com/

MORE YOU WON’T WANT TO MISS
- Telecosm After Hours (Each night, in Mister Brown's Pub &
Trillium bis)

- The Call of the Entrepreneur (Pre-release film screening)
-
The World at Our Fingertips, featuring Steve FORBES
- Investing in Israel
- Outperforming the Market: The Only Three Question That Count, featuring Ken FISHER

- The Coming Revolution in Internet Graphics, featuring Jules URBACH
- The Microprocessor Forum: Beyond Moore's law
- The Wireless World, featuring QUALCOMM
’s Jeff Belk
- Air Kings: Gaining the edge in broadband wireless
- New Materials in Nanotech, introducing two unbelievable new companies.
- LAN's End: Why the local area network will fall
- Trust: Where should security be on the Net?
- The Future of Silicon Design

- The Critical Path of Fiberspeed Connectivity, featuring Eli Fruchter of EZCHIP
- Optical to the Core, featuring Luxtera, Equinix, and Infinera
- The Wirespeed Challenges of the 10-Gigabit Era: Are you getting enough fiber?

FAREWELL EVENING
- Lake George fall foliage cruise, with cocktails and dinner, aboard The Adirondac.
- The Original Dream and the Continuing Quest, featuring Carver MEAD

 

The Week / Semitool’s Solid

Gilder Telecosm Forum Member #1 (8/28/07): I just had a nice run on some Sigma (SIGM) options I had been trading and I want open another trade. After reading many posts here, three ideas come up:

1. Recent suggestion of the Jan 09 NetLogic (NETL) calls (but these are far out time-wise)
2. A block of Power-One (PWER), at nearly a 10 year low
3. A block of Semitool (SMTL), at a very good trading low

Does any one want to offer any more suggestions or comments before I establish a position today?

 

George Gilder (8/28/07): Semitool (SMTL) is a solid company with splendid management and technical mastery playing a critical and ever expanding role in the transition of the microchip industry to copper metalization, which entails a transformation of some 16 percent of wafer fabrication steps. Its market cap, near its annual revenues of under $300M, is close to its 12-month lows except for a brief dip to near $7.

To read George’s comments on Power-One (PWER), login with your subscriber ID today, at http://www.gildertech.com/.
__________________________________  

 

The Gilder Telecosm Forum

The
web’s premier technology investment discussion forum, the Gilder Telecosm Forum is a powerful network of talented, tech-savvy investors and thinkers who collaborate online daily with George Gilder and the Gilder Telecosm Forum analysts and editors.

Become a GTF member today: http://www.gildertech.com/


Friday Feature /
Net’s Pipes Can’t Keep Up with YouTube Age

Robert Mullins, Network World (8/30/07): The Internet needs a massive investment to keep up with the demands of YouTube fans, billions of e-mails and wireless access, a university study states.

 

If the network that carries Internet traffic were a highway, it would be as if every car owner, “rushed out and traded in their cars for massive 20-wheel trucks,” stated the report from University of California-San Diego Professor Michael Kleeman, a senior fellow at the USC Annenberg Center for Communication.

 

In the report, titled “Point of Disconnect,” Kleeman writes that there needs to be a massive expansion of network capacity in the United States, and even though network operators are making those investments, it still may not be enough to keep up with demand.

The report also calls for greater use of compression technology, especially for large video files, to reduce demands on the network. Kleeman noted that the number of new videos uploaded daily to the popular video-sharing Web site YouTube.com jumped to 65,000 at the beginning of this year from 20,000 at the beginning of 2006, and that one minute of video requires 10 times as much bandwidth as a voice phone call….

Read the complete article:
http://www.networkworld.com/news/2007/083007-internet-traffic-increase.html

________________________________________

Friday Blogger Bonus / Israeli Stocks


Shlomi Cohen, www.Globes.co.il, Israel business news (8/28/07): Two small Israeli stocks in my portfolio, Ceragon Networks Ltd. (CRNT) and LanOptics Ltd. (LNOP) stood out this week, since they both recovered from the crisis at an amazing speed, hitting two-year highs during Friday's session. I wrote some time ago, that Ceragon's stock has been "captured" by strong American hands, and last Friday those hands did not tremble as they acquired it at prices upward of $18, 44% higher than the low reached in the previous week when the crisis was in full swing….

As for LanOptics, Friday's gain was apparently the result of a prominent report by a technical expert on "TheStreet.com" whose headline described it as a "small-cap tech stock that could break out." On a day of sharp gains, a report like this is enough to fuel any small stock. In addition, at the beginning of the week, LanOptics sold 800,000 shares at $14.88 each to a private investor called James Cheney.

In my view, this sale of 800,000 out of an open prospectus for 2.5 million shares, strengthens those investors who believe the company has a great future, even it is traded at a level that reflects a value of at least $350 million for its sole asset, EZchip Technologies Ltd. It turns out that the "anonymous" investor is a longstanding member of George Gilder's forum and the latter's enthusiasm over EZchip's network processors apparently played a key role in his decision to invest $11.9 million in one company.

Read Cohen’s complete post:
http://www.globes.co.il/serveEN/globes/docView.asp?did=1000248322&fid=1176

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Readings /

LanOptics to Present at Roth Capital Partners 2007 New York Conference
http://money.cnn.com/news/newsfeeds/articles/prnewswire/UKTH02630082007-1.htm

Google’s Secret Society
http://www.forbes.com/technology/2007/08/28/google-brazil-network-tech-cx_ag_0828orkut.html

Who’s to Blame for the Sub-Prime Problem?
http://article.nationalreview.com/?q=NjcxODIyMDI3OWI5MGJhZGE3NzVmZGFkZTk2YTE5ODk=


The Weekly GTI
http://www.gtindex.com/

Worm in the Apple
http://www.forbes.com/technology/2007/08/28/apple-jobs-computers-tech-cx_bc_0829apple.html

How Internet Traffic is Increasing Network Equipment Spending, Part I
http://www.briefing.com/GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?SiteName=InvestorPopUp&ArticleId=NS20070809124129IndustryInsight
__________________________________________


FRIDAY LETTER STAFF

Editor: Mary Collins George / mcollins@gilder.com

Research: Sandy Fleischmann / sfleischmann@gilder.com

 

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