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Technology Stocks : Omni Multimedia Group OMG-AMEX

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To: Craig who wrote (33)11/9/1996 9:35:00 AM
From: Thomas C (Hijacked)   of 86
 
Craig,

Yes, the company may have some upside stock price potential if there earnings pan out for fiscal 98. In addition the stock may start on a rebound once the new year starts from the January effect which particularly affects AMEX stocks. If you look at the stock chart, you can see that there was a tremendous sell off during month of October or so with unusually high volume. I will watch this stock closely as the new year starts.

The CD duplication companies that I also had looked into were Metatec and Nimbus CD International. These are just two out of at least 20 others that are dominating the market for CD replication. If I were to invest in a company in the CD replication industry, I would want go with the industry leader in the group because too often the weaker players in the game are not going to keep up to pace with the winners. Nimbus CD (NMBS) caught my attention because they are the first replicatior in the country to have a DVD replication facility. They also just patented a CD Rom that has a 3D hologram on it to prevent illegal duplication. Now this caught my attention because given the commodity nature of the CD replication business, it is good to have a company that is on the leading edge and willing to innovate.

If you look at the price performance of Nimbus and Omni since they went public (which is about a year). So far, Nimbus is up about %30 and Omni is down about 80%. Nimbus' ability to keep above the S&P 500 and remain above water since its initial public offering says good things about the company and stock. I have to look at the earnings trend again of Omni in Dow Jones and see whether they can make a recovery. Because if this crash in stock price is only the result of a temporary dip in earnings then it may be worth a closer look.

But no doubt, DVD will be the next big media craze until and through the year 2000. Thats why I am so attracted to Nimbus and their leadership in having the first DVD replication facility. Plus Nimbus has an international presence. Just think about how big DVD sales could be. Eventually DVD discs will replace every single videotape in the world, and think about how many VCR videotapes there are in the world. Plus with DVD enourmous storage capacity, they will be sorely needed as a storage and content medium for all the worlds internet servers. And we know the the internet is growing by leaps and bounds.
Consumers will be attracted to the awesome video playback quality of DVD and the ability to see different movie endings.

I have a bar chart which shows the growth in CD sales. And it appears to be on a constant slope upward.

Tom
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