I went long DIMD as a pure momentum play a year or so ago and made a bundle. Then I shorted the hell out of it all the way to the bottom.
STILL looks like a broken stock to me.
SAN JOSE, Calif.--(BUSINESS WIRE)--June 9, 1997--Diamond
Multimedia Systems, Inc. (NASDAQ:DIMD) today announced that it
expects revenue for the second quarter ending June 30, 1997 to be
significantly lower than the current expectations of Wall Street
analysts and that it further expects to incur an operating loss
substantially greater than the loss reported for the first quarter of
1997.For the first quarter of 1997, Diamond reported revenue of
$112 million and net loss of $6 million ($0.17 per share).**** Sounds like just the company I wanna go long on. (Yeah, right.)
"While we are truly disappointed about our projected financial
performance for the June quarter, we do not plan to let the
difficulties of this first half of 1997 product transition period
distract us from the potential market opportunities we believe we
have in front of us," said William J. Schroeder, President and
Chief Executive Officer.
"Our near term projected financial results are the result of our
base business, today represented principally by 2D graphics and 33.6
Kbps modems, having transitioned to commodity status. Both markets
have become extremely competitive, leading to significant price
erosion, depressed gross margins and channel price protection
charges. ******Whoa nellie, where's my checkbook. I'ma gonna buy me some stock!!
During these periods of slower demand, lower sales and
abundant products, the Company has been attempting to reduce its
distribution channel inventories, which has contributed to shortfalls
in revenue." |
