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Technology Stocks : Diamond Multimedia

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To: steve patagonia who wrote (4240)	4/9/1999 8:21:00 PM
From: Springer	Read Replies (1) of 4679

I don't think that DIMD gets $200/unit. They sell to distributors, etc. I would guess that the number is closer to $100-$150/unit towards DIMD's bottom line, putting the sales more in in the range of 12 Million, not 23M. That will add about .34-.51/s to their Sales per share... Assuming a profit Margin of 10% adds about .03-.05/share to their bottom line. Don't get me wrong, I am a significant (for me ;) ) shareholder of DIMD stock. I definitely think the company is very undervalued. But I don't think this RIO player is going to send the stock soaring. PRoducts like the FireGL1 and alliances with Dell, IBM and Hp are going to do ALOT more for their numbers than the RIO. My 2c. Springer

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