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

To: Jack Whitley who wrote (3919)	2/8/1998 4:03:00 PM
From: AreWeThereYet	Respond to of 4335

>> This is interesting and makes it look like Oak's doing a good thing by getting out of graphics. But what are they going to sell besides CD controller chips to generate revenue? Also, will there be a charge taken to divest of graphics ? << Yes, they definitely did the right thing to divest the graphic business because the competition is very intense and they do not hold any competitive advantage. It is hard to steal market share from established company like 3Dfx, Nvidia and Verite. Besides the CD Controller chips, the only potential product they have is Pixel Magic's digital imaging technology but so far the result is not very impressive. They need better marketing and the new members of the management may help. In 1998, OAKT should have approx 400M unit of CD-ROM controller shipped so there is little risk that we will see red in FY98. I still believe $6 is the bottom for OAKT, it should not stay under $6.00 for long but the future is not clear. (OAKT is in very similar situation as SIII, both are good candidates for bottom fishing investment) aC