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Technology Stocks : Diamond Multimedia -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan Quick who wrote (4489)	6/23/1999 6:00:00 AM
From: PaperChase	Respond to of 4679

In 6 months, there will be so many manufacturers of MP3 players that consumers will mumble "What is the RIO?". S3 can provide the cash resources over the short term for DIMD to survive. As we have seen in the past, DIMD is not about to stop their obscene behavior of allocating capital to build inventory and then later write it off. (Do they teach this technique in B-school? <G> ) The company about to crumble is Nvidia unless they can find a board stuffer to acquire. There aren't many board stuffers left to chose from.

To: Jonathan Quick who wrote (4489)	6/23/1999 9:30:00 AM
From: kendal lee	Read Replies (1) \| Respond to of 4679

Thanks for your reply. I tend to agree with you and that the short term no high expectation is foreseen. But for the long term, I looked at S3's financial report from their web site at www.s3.com. If I could guess their financial report over the years from 1994 to 1998, it seems S3 had a long term debt which suddenly deminished in 1998 to only 13 million. Also they had just about no profit for 1998, after having a profit in 1997 and previous. I would guess they took their potential profits and paid off most of their long term debt. And having just about no profit is good so they did not pay much taxes fro that year. What I'm getting to is that I think it was a good company to merge with from a financial point of view. I don't understand why a company, Diamond would buy a company 3 times smaller than itself. I think its more of a merger, and Diamond thought that the S3 name was better and took over the S3 name. But announced S3 bought Diamond. But about internet home appliance control. I think this is a BIG future market. Again, its ahead of its time. But it will come. thanks again,