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Technology Stocks : Diamond Multimedia
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To: Philip W. Dunton, Jr who wrote (3949)1/9/1999 10:36:00 AM
From: Fernando Saldanha  Read Replies (2) of 4679
 
Just some thoughts on DIMD. I think many bought this stock hoping that huge sales of the Rio would increase profitability. That sounds reasonable and it may be happening. Others mentioned that AOL could be interested in the shotgun concept. This is an interesting idea. AOL has a heck of a lot of customers in areas that will not get high speed access to the internet years from now.

But I think there is another interesting possibility. A lot of money is being made out of advertising in the net. AOL could make a deal with music producers to include sound bites with ads in music MP3 files. Or alternatively, news and other material could be distributed in this way. You take the subway with your Rio and listen to the news you downloaded from AOL overnight, including ads. Of course, the download would be selective: you choose the areas you are interested in (sports, local to your town, international, etc.)

Does this make sense?
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