DIMD in Perspective
Posted Before the Announcement:
"Diamond announces earnings tonight. As one of 3Dfx's premier customers, and the seller of the top-selling board carrying the Voodoo2 chipset, we should analyze their report carefully.
Yes, sales of their Monster 3d II boards have been great, and graphics boards in general make up a substantial percentage of DIMD business, but they are in a state of flux, losing money on their commodity modem business, buying up Micronics, getting rid of excess inventory reported last quarter, etc. So who knows if they'll (as I hope) beat the estimates?" Posted by Swingtrade on MF, 3:19 PM.
Cheer up. No mater how we view it, Diamond never really said they were disappointed in 3dfx related sales, just in their hopes of breaking even using our product.
After all, whose fault is it that they stumbled into the market place with 8 Mb boards in a 12 Mb board market? No wonder their sales channel is a little stuffed. I don't see that touched upon in their report.
Tomorrow's open does not mater. My fearless forecast is that tomorrow TDFX will close up from today's close. We are all of us too close to earnings to jump.
The Market is out there.
Hal
PS: A major TNT performance review is due over the weekend. We just might emerge looking like the proverbial 800 lb winner on Monday morning. HR |
