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Technology Stocks : Diamond Multimedia
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To: steve patagonia who wrote (4602)7/25/1999 6:11:00 PM
From: Ram Seetharaman  Read Replies (1) of 4679
 
The next important thing is - how is SIII going to enhance this good product that DIMD put out recently for the music download. Are they going to offer marketing muscle or technology muscle or both? We all know that SIII is rolling in cash for the UMC deal couple of months ago. They bailed out DIMD from their sales and profit slump. If they expand their product line and increase sales and profits, it will be a good marriage - otherwise they are simply playing "Good Samaritan" and bailing out an "underdog or loser" - which is never a sound business decision. The more I see e-machines coming out for $99 or even for "free" (by making customers buy three years of internet service from Compuserve or equal), it has got to be a tough business environment for vendors to turn a decent profit and that is why DIMD was losing money and unlike SIII, DIMD made no good investments in the semi/chip business! If SIII/DIMD together can make Rio takeoff and make some profits by selling it in volume, the future may not be that bad after all!
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