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Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?

To: OrionX who wrote (5552)	5/26/2000 12:22:00 AM
From: Robert	Read Replies (1) \| Respond to of 5927

No false comments....just statements of fact...FROM the company itself...

To: OrionX who wrote (5552)	5/27/2000 3:35:00 AM
From: Stocker	Read Replies (3) \| Respond to of 5927

OrionX, For the record, I like ATI and have owned them many times in the past. Still and like Robert, I think there's reason to be concerned too re: - Competitors like Intel and Nvidia...... They should always be a concern. Afterall, ATY has been very vulnerable to even the thought of competition from them in the past. ATI is in a very competitive space and there are no guarantees they'll stay where they are. ATI's stock price has always been "sensitive" to what Intel etc is doing, sometimes VERY. - Shrinking margins...... ATI has said they've fallen. ATI's own projections were wrong. It's not a given their new projections will be right either. Given that parts suppliers are struggling to meet demand now and new capacity takes time to put in place, the problem may not go away for a while. - Flat to shrinking revenue growth...... Temporary? Maybe, but again maybe not. ATI needs more set top and game box deals soon. - Negative earnings...... Ditto. Other than market share, what Robert's said here really wasn't far off. ATI's not priced based on past performance. Instead it's future expectations that drive the market - and those expectations just got crushed, again by ATI themselves, not the opinion of someone outside the loop. As for analysts, think about where they get their figures from. They generally have much better access to info than anyone else here. They're the ones that get bashed for having privaliged info access. They're also the ones taking the CEO and IR guys to lunch. Usually their projections are guided by management of the company. Yes the analysts were wrong about ATI this time but even ATI was in the dark. If analysts have adjusted their figures downward, it's more than likely based on ATI's new guidance. I wouldn't just dismiss their views. Given that the analyst community generally hates to issue downgrades, I'd say it makes more sense to pay attention to their bearish research reports than the bullish ones that are a dime a dozen. I hate to say it but I think ATI is dead money for a while unless they come through with some major new deals outside the PC space. Even then, the market may not move much on that kind of news if it doubts ATI's ability to get the parts and pricing power they need. There may very well be a bounce but not a lasting one. Not until there's a catalyst to shake off the gloom. I'd guess fall this year at the very earliest, likely longer. Just my two cents.....