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

To: michael who wrote (3336)	1/26/1998 8:13:00 PM
From: William L. Molair II	Read Replies (1) \| Respond to of 4679

What am I missing here? Company handily beats earnings, has a very positive conference call, announces an OEM deal with DELL, and trades down over a point today on high volume?! What is it gonna take to get this stock moving higher?

To: michael who wrote (3336)	1/27/1998 8:02:00 AM
From: Glenn	Read Replies (1) \| Respond to of 4679

Dow Jones Newswires -- January 26, 1998 Diamond Multimedia Falls 9%; Profit-Taking Cited By Ted W. Kemp NEW YORK (Dow Jones)--Diamond Multimedia Systems Inc. (DIMD) shares shed 9% of their value Monday, and market and company sources said investor profit-taking was most likely to blame. Diamond Multimedia, which develops and markets multimedia systems, saw its shares decline despite a report of earnings late Thursday that exceeded expectations and Monday's announcement that Dell Computer Corp. (DELL) will use Diamond Multimedia's video card in its Dimension desktop personal computers. "It seems pretty weird to us," said Jim Walker, Diamond Multimedia's chief financial officer. The San Jose, Calif., company reported fourth-quarter earnings of 20 cents a diluted share, compared with a First Call Corp. consensus estimate of 14 cents a share. Walker pointed out that Diamond Multimedia's shares had steadily gained ground since December, and he speculated that profit-taking was to blame for Monday's slip. Diamond Multimedia reached 13 1/8 Wednesday, having climbed from 8 7/8 on Dec. 30. Youssef Squali, an analyst with Laidlaw Global Securities Inc., said the stock's recent appreciation was too much of a temptation for investors seeking to nail down their profits. "It's gone from about 8 to 13," he said. "There's a tremendous amount of buying into the stock at those levels, and now a lot of people are cutting their profits short." Analyst John Taylor of Arcadia Investment Corp. also cited profit-taking, but was bullish on the company's fundamentals heading into the first quarter. Taylor said first-quarter demand looks strong for the company's 3D graphics business, while the anticipated establishment of a standard protocol on 56K modems late in the first quarter by the International Communications Union should improve the overall modem market. Financial chief Walker said multimedia technologies generated about 80% of Diamond Multimedia's fourth-quarter revenue, with modems accounting for the rest. Squali said sales conditions are likely to favor Diamond Multimedia as the computer graphics market moves away from 2D to 3D and the 56K modem standard improves sales of those products. Diamond Multimedia's backlog heading into the first quarter is "at least as strong" as it was at the beginning of the fourth, Squali said. Diamond Multimedia closed Monday at 11 3/8, down 1 1/8, on volume of 820,300, compared with average turnover of 701,800.