Neomagic Corp. (NMGC) Message Board

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Technology Stocks : Neomagic Corp. (NMGC)

NMGC 0.00730

-43.8%

Nov 7 9:54 AM EST

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To: CMon who wrote (2457)	2/3/1999 7:59:00 PM
From: vincenzo	Read Replies (2) of 3645

CMon - Neo needs to break the pump and dump pattern in it's stock price if it is ever going to reach the premium valuation it deserves. Each time the cycle is repeated, it reinforces the pattern and emboldens the players who manipulate it. The increased volatility inflicted on this stock actually reduces the stock's overall value as an investment instrument. The bounces make it a fun stock for professional traders, perhaps, but serious investors who buy to hold and even management who holds a large stake are literally robbed of the premium this stock would command if this artificial volatility was removed. Anything that management can do to stabilize the stock price and reduce the volatility will reward the true stakeholders. A stock buy back would be an excellent first step in restoring confidence in the stock as a serious investment vehicle and not trader's toy. I disagree with you completely that NMGC needs to hoard their cash. They are generating about $25MM a quarter in gross profits which is more than adequate to fund on-going R&D efforts. The available cash should be used intelligently for valid corporate purposes. A stock buy back at these prices would benefit all shareholders. Neo is very attractive at the current price and I intend to take further advantage of the sell-off as soon as I sense the momentum has turned. First I must slice my wrist and spill a pint of blood on the cold ground for I entered this stock too early in the current down draft to take full advantage of it. If the stock breaks $12, I will cut off one of my remaining fingers with my pruning shears. This will to remind me in the future not to push the buy button too early when a good stock tanks. As I only have 8 fingers left, this would be a great tragedy. Hence, my call for a stock buy back seems prudent to me at this time. vincenzo

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