Diamond Multimedia Message Board

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Technology Stocks : Diamond Multimedia

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To: StockJock-e who wrote (3851)	11/25/1998 1:40:00 PM
From: Matt Kaarlela	Read Replies (1) of 4679

OK stock jocke, I have to respond to this one. You say maybe MM's just pumping up price...I say a stock's price is at least to some degree a reflection of the forward looking earnings projections times some multiple. Without getting into the multiple part, if RIO is profitable which I think we all agree it is, then that means higher earnings. Higher earnings justify higher stock price. I would expect a manipulation issue only if there were no increased earnings to explain a run up in price. I don't think that is the case with Diamond right now. They have a respectable graphics card line, a good line of V90 modems (shotgun is a plus), and now the RIO. When you factor in the recent restructuring which means lower overhead costs, why wouldn't this one go up. Maybe I'm missing something but I see this as extremely positive for the stock right now.

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