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Technology Stocks : C-Cube
CUBE 37.68+1.7%Jan 9 9:30 AM EST

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To: John Rieman who wrote (23881)10/14/1997 9:58:00 AM
From: BillyG   of 50808
 
RESEARCH ALERT-Diamond Multimedia started

NEW YORK, Oct 14 (Reuters) - Arcadia Investment Corp said
Tuesday it started coverage of Diamond Multimedia Systems Inc
with an accumulate rating.
-- Analyst John Taylor said three coincident product cycles
mean new growth opportunities in 1998 and 1999, with demand
growing for 3Dfx-based graphics accelerator upgrade cards and
56Kflex modems. Diamond is a vendor of both.
-- Also, the adoption of DVD standards in 1998 could spark
an upgrade market for these new high-density storage devices,
he said.
-- Taylor said said low priced PCs are bringing new buyers
back into the market, which should broaden the potential
installed base for upgrade vendors, and said the company has
won pacts with strong strategic partners.

-- "We believe the risk-reward ratio in the stock is
attractive ... and would look to be more aggressive upon final
resolution of key standards issues, new OEM deals or improved
potential for upside surprise," he said.
-- Shares were up 1/16 to 11-13/16 in early trading.

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