Rob Davies (TMFEssex) says that set-top box manufacturer Pace Micro Technology (LSE: PIC) is perfectly placed to cash in on the digital TV revolution; Stuart Watson (TMFTiger) reckons the market's too competitive.
What do you think? Read both arguments carefully, and then vote and debate the merits of the arguments on the Duelling Fools discussion board.
The Bull Case
"Pace is doing its best to cope with worldwide demand for 20m STBs this year and a market that is expected to grow to 70m by 2005. Pace has about 10% of the world market, but most of its products are sold in the UK, where the growth is fastest. As the only pure STB maker Pace is the company best placed to benefit from the making the Internet truly universal." more
The Bear Case
"Pace Micro Technology is an overpriced commodity box shifter. It's true that the world-wide market for set-top boxes, or "Home Gateways" as the company rather pretentiously calls them, is growing rapidly. But it does not follow that by operating in this market Pace will be a successful investment." more
• The Bull Case
• The Bear Case
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Where Next?
• The Digital TV sector is one of 14 discussed in The Motley Fool's Industry Focus 2001, available now. Order before December 15th and get 2 free research updates during 2001.
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