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Technology Stocks : Diamond Multimedia

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To: Matt Kaarlela who wrote (4282)4/16/1999 9:48:00 PM
From: Eric Winterhalder   of 4679
 
I would add another possibility to your second example:
3) A short trying to create a little FUD.

From the recent shareholder letter.

streetlink.com

<<<With current strength in both our emerging and remaining core businesses, we expect to have a strong first quarter.>>>

IMO Bill Shroeder and Jim Walker know they have to not only make the estimates but beat them this Q to begin to restore some confidence with the "street" and remaining long term holders. They MUST show that they have indeed turned this company onto a profitable course. To fail to do so given: 1) they have had a full quarter in which the steps previously taken to change the course of this company have been in place 2)the results for DIMD first Q's historically 3)a full Q of what are percieved to be hot new product sales including Rio , would IMO almost certainly be an admission of failure and create great doubt as to senior managements ability to execute under any circumstances.

Of course the operative word in the above clip from the letter is "expect" and I expect that they will handily beat the estimates, however at this point I really dont know and IMO anyone who claims they do (with exception of the CEO/CFO of DIMD) is talking out other end of their digestive track.

EW
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