One explanation:
Diamond Multi Up 22% Over 5 Sessions; Rosy 1Q
Outlook Cited
NEW YORK (Dow Jones)--Shares of Diamond Multimedia Systems Inc.
(DIMD) touched their 52-week high Wednesday, following four
consecutive positive sessions that bid the stock up a total of 22%.
The multimedia system provider's Nasdaq-traded shares were recently at
13 13/16, up 7/8, or 6.8%, on volume of 2.7 million, more than three times
the daily average of 727,426.
The shares earlier Wednesday reached 14, matching the high set exactly 52
weeks ago, Feb. 26, 1997.
Analyst Lenny Brecken, of CIBC Oppenheimer, said he attributes the
stock's ascent to investors who are beginning to take note of the strong
performance of the company's retail-based side.
"The company's retail-based business is doing extremely well for the first
quarter," Brecken said. "(Investors are) anticipating a significant upside
suprise in the first quarter."
Investors may be picking up those optimistic sentiments from the
company's largest chip supplier, he added, which is currently on the road
for a secondary offering.
Brecken said he expects the company's first-quarter revenues to beat those
of a year earlier by 55%, and revenues for all of 1998 to beat the
year-earlier by 52%.
He projects the company will earn 21 cents a share in the first quarter, a bit
more than First Call's average estimate calls for 19 cents. For the full year,
Brecken estimates 66 cents a share, two cents above the average.
Company officials and other analysts could not be reached immediately for
comment.
-By Tara Siegel; 201-938-5176 |
