I like to bottom fish a bit. NMGC is a semiconductor stock that got beat up a bit a while back when they said earnings would be weaker than expected. Here is a brief overview of the company's main business:
biz.yahoo.com
NeoMagic Corporation designs, develops and markets high-performance semiconductor solutions for sale to original equipment manufacturers (OEMs) of mobile computing products. The Company's MagicGraph128 and MagicMedia256 product families integrate large DRAM with analog and logic circuitry on a single chip. NeoMagic's products range from accelerators designed for notebook PCs that span across all notebook categories including desktop replacement, mainstream, value- oriented, ultra-portable, and entry level systems. All of the Company's net sales in fiscal 1999 were from the sale of multimedia accelerators to notebook PC OEMs, or to third-party subsystem manufacturers who design and manufacture notebooks on behalf of the OEMs. NeoMagic products are currently used in notebooks sold by Acer, Compaq, Dell, Fujitsu, Gateway, Hewlett-Packard, Hitachi, IBM, Micron, Mitsubishi, NEC, Panasonic, Sharp, Siemens, Sony, and Toshiba.
This looks like a excellent long term value in a hot sector because they are also making inroads into the wireless and internet device market via TelenComm:
biz.yahoo.com
NeoMagic Invests in Wireless Start Up, TelenComm,
Inc.
SANTA CLARA, Calif., Jan. 24 /PRNewswire/ -- NeoMagic Corporation (Nasdaq: NMGC - news), the pioneer of embedded memory and logic technology and the leading producer of single-chip multimedia accelerators for mobile computers, announced NeoMagic has made an investment in TelenComm, Inc., a private company developing wireless communications technology for Wireless Personal Area Network (WPAN) applications. Prakash Agarwal, president and chief executive officer of NeoMagic Corporation, has joined the board of directors of TelenComm, Inc.
``NeoMagic's vision is to deliver enabling technologies for mobility and multimedia, fueled by the growth of the Internet. We believe wireless communications will be an important part of future applications for mobile multimedia systems. We are pleased to support the innovative team at TelenComm, Inc.,' said Prakash Agarwal.
I believe that only the bad news is factored into the stock price of NMGC. Going forward I think this one is a winner. I'm in today at 5 1/2.
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