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Technology Stocks : Oak Technology (OAKT) -- Ignore unavailable to you. Want to Upgrade?

To: AreWeThereYet who wrote (3866)	1/23/1998 12:11:00 PM
From: Bonzo	Read Replies (1) \| Respond to of 4335

Andy I wasn't particularly thrilled with the news that OAKT was buying back 2M shares. Peanuts considering the company is sitting on 145M in cash. Besides it would be interesting to see how many shares they actually do buy back during the course of the year, I believe it will be considerably less than announced. As someone has said, I'm very skeptical of the high end mgt. of this company based on past performance. That said, its probably a good move to divest unprofitable segments of thier business, although I did have high hopes for Warp5. I will be buying more shares soon, hopefully under 6. Not because I'm bullish on the companies prospects, in the near term I'm not. Simply a valuation play and the fact it is a bit oversold. The problem is CD-ROM sales still represent >80% of revenues and no major design wins for new product introductions. So far OAKT's strategy of product diversification/transitioning has not paid dividends for them and mucho R&D dollars have been invested. At some point in time, the law of diminishing returns will have an effect on CD-ROM sales, although they have been able to extend the lifecycle of this product some with CD-Recordable. DVD will inevitably replace CD-ROM, for us shareholders, the slower the better. If OAKT cannot make significant in-roads into the DVD market then they must MERGE with a ZRAN, ESST (doubt CUBE would be interested). Either buy the the technology (company) or put yourself on the block for at least 2-3 x sales. We should all go to the next shareholders meeting and raise hell!! :-)