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-  THE FRIDAY LETTER  -

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for friends and subscribers)

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 | http://www.gilder.com/ | Issue 309.0/September 7, 2007

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HEADLINES:

-  The Week / Gilder: Intriguing Paradigm Companies
-  Friday Feature / Christensen: Six High-Tech Disruptors Ready to Hatch
-  Friday Blogger Bonus / Karlgaard: Loving Entrepreneurs
-  Readings /


SPECIAL OFFER


Gilder/Forbes Telecosm 2007 CONFERENCE

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


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

YOU WON’T WANT TO MISS
- Telecosm After Hours (Each night, in Mister Brown's Pub)
-
The World at Our Fingertips, featuring Steve FORBES
- Outperforming the Market, 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
- New Materials in Nanotech, introducing two unbelievable new companies.

- The Critical Path of Fiberspeed Connectivity, featuring Eli Fruchter of EZCHIP
- The Wirespeed Challenges of the 10-Gigabit Era
- Investing in the Exacosm, with George Gilder
- Eco-Investing: Environmentally friendly technologies
- Global Warming and Climate Change: Scientific fact
   or Academy Award winning propaganda?

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 / Intriguing Paradigm Companies

 

George Gilder, Gilder Telecosm Forum (9/3/07):  My paradigm companies in general fit in the increasingly congested, buffered, and mismatched interfaces between a fiberspeed Internet, tripling its reach and capability every year or so, and a Moore's law or fingerspeed regime of electronics and IO tools that cannot keep pace.

In the critical path are an array of fiberspeed devices, architectures and systems that enable the new optical infrastructure: EZchip (LNOP) (which I own) captures and sets the new standard of 10 Gigabit Ethernet and IP of the new Internet. NetLogic (NETL) enables high-end lookups at wirespeed and may well be moving into the iRAM paradigm of David Patterson, which has long intrigued me. Micron (MU) is also tentatively exploring this Patterson theme and is pioneering the copper metalization upgrade with Semitool (SMTL). Cavium (CAVM) does security processing and competes with the still private Raza Microelectronics; these companies are developing new multichannel architectures that can accomplish wirespeed operations at the higher layers of XML, TCP, and multimedia processing. Sigma (SIGM) can do fiberspeed decoding for all the video devices on the edge of the network and thus is a critical path supplier.

Nvidia (NVDA), AMD-ATI (AMD), and Acceleware ride the fabulous graphics learning curve of pixellated parallelism. There may be more intriguing companies there. In wireless, Qualcomm (QCOM) and Anadigics (ANAD), plus their followers, have more promise than the WiMax cluster.

As a general observation, the area of lasers is finally coming into its own with an array of new technologies that will enable new networks and displays of all kinds. Carver Mead's companies continue to shine and several will be coming public over the next couple years. It's an exciting world out there. A lot of it will be converging at Telecosm at Lake George on October 16 to 18. (Click here for details.)

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 / Six High-Tech Disruptors Ready to Hatch

Clayton Christensen, Forbes.com (9/4/07): One of the core findings from my research is that companies innovate faster than people's lives change. Think about your mobile phone. Odds are, you use only a fraction of the capability of the phone. Companies have to play this game. The sustaining innovations that move a company along an established improvement trajectory are the life blood of any firm.

While the true disruptive power of innovation generally is not the technology itself, but rather in the business model that surrounds that technology, here we take a look at some of the most interesting emerging technologies that we have come by. With the right business models, these technologies could be at the core of future disruptive change.

1) Charging Wireless Gear Wirelessly
2) Disruptive Sweepstakes
3) A Polaroid In Your Cellphone?
4) The (Auto) Doctor Is In
5) Print Your House
6) Here Comes The Sun

 
Learn about all six of these emerging technologies:
http://www.forbes.com/2007/08/31/christensen-emergingtech-google-pf-guru_in_cc_0904christensen_inl_print.html

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Friday Blogger Bonus /Loving Entrepreneurs


Rich Karlgaard, Forbes.com, Digital Rules blog: When it isn't fanning global warming hysteria, USA Today's Money section is consistently good. Here is a nicely done story titled "Companies, Investors Tend To Prosper When Founders Remain At The Helm."

 

USA Today: Apple has become the most celebrated example. Its stock was $2.03 in 1985, adjusted for splits, when founder Steve Jobs left, according to market data provider CSI. When Jobs returned in 1997 after 12 years, shares traded for $3.95. Fast-forward 10 years, with Apple's shares at $127.57.


Apple isn't alone. USA Today reports 15-year stock gains for 63 companies still led by their founders. The companies include: Apollo Group (John Sperling) 6,340%; Amazon (Jeff Bezos) 4,381%; Pre-Paid Legal Services (Harlan Stonecipher) 4,302%; Dell Computer (Michael Dell) 3,389%; Oracle (Larry Ellison) 2,650%.

The S&P return over the same period? Only 222%.

Well done, USA Today.

Question for the day: When you invest in stocks, do you go strictly by the numbers, or do you also consider management quality? And when thinking about management, do you like companies still led by their founders?

Read complete blog and subscriber comments:
http://blogs.forbes.com/digitalrules/2007/08/loving-entrepre.html

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Readings /  

Ever-younger Entrepreneurs
http://www.boston.com/business/globe/articles/2007/09/07/ever_younger_entrepreneurs/

Steve Jobs Apologizes
http://online.wsj.com/article/SB118910651781519626.html?mod=hpp_us_whats_news

Bernanke Resists “Hair of the Dog”

http://www.ftportfolios.com/Commentary/EconomicResearch/2007/8/20/Bernanke_Resists_Hair_of_the_Dog

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

Justice Dept wary of "net neutrality" proposals
http://news.yahoo.com/s/nm/20070906/wr_nm/netneutrality_doj_dc;_ylt=AkQH2YVP1WNMCKZ9tFbJyL0jtBAF

New Senate Bill Aimed at Wireless Carriers
http://blog.washingtonpost.com/posttech/2007/09/new_senate_bill_aimed_at_wirel.html?nav=rss_blog

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FRIDAY LETTER STAFF

Editor: Mary Collins George / mcollins@gilder.com

Research: Sandy Fleischmann / sfleischmann@gilder.com

 

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