Neomagic Corp. (NMGC) Message Board

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Technology Stocks : Neomagic Corp. (NMGC)

NMGC 0.00730

+1.4%

Nov 7 9:54 AM EST

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To: Mani1 who wrote (3015)	5/20/1999 10:32:00 PM
From: tejek	Read Replies (1) of 3645

Mani Just to be clear on this....nsm is not selling the portland fab outright; they want to sell a majority interest in it but they want to continue to reserve a portion of it's production for their needs. Essentially nsm needs cash to get into their new program. But they are concerned about production and do not want to give up the fab outright; in effect they want to best of all worlds and that is what will make it possible for an unusual arrangement to work. NSM is in the driver's seat because of the purported growing shortage of fab capacity but have a problem because they are not going out the chip business completely, only one segment of it. Thus they require a special buyer. I suspect they are having trouble pulling it off (finding that special buyer) and that's why they went public 2 weeks ago and not because their stock was running up as they claimed Not withstanding their market cap, nmgc will have to do something unusual like this or slowly go out of business. This may be the first time there has ever been a shortage of fab space and i think its going to take some creative thinking for the fabless companies to stay afloat. What do you think? ted

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