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

To: lml who wrote (3421)	2/25/1998 3:18:00 PM
From: Philip W. Dunton, Jr	Read Replies (1) \| Respond to of 4679

LML You would have better luck in stimulating the participation and conversations on this tread if you could figure out some way to get rid of those two barney bears, Jonathan Quick and Rod MacPherson. Those two have ruined this tread, in my not so humble opinion. It is a shame because this is an interesting situation. PD

To: lml who wrote (3421)	2/25/1998 6:10:00 PM
From: Kerry Lee	Respond to of 4679

International Manufacturing Services, Inc. Announces New Business From Diamond Multimedia PR Newswire - February 25, 1998 12:46 IMSX DIMD %CPR V%PRN P%PRN SAN JOSE, Calif., Feb. 25 /PRNewswire/ -- International Manufacturing Services, Inc. (Nasdaq: IMSX), a leading provider of electronics manufacturing services, today announced that Diamond Multimedia (Nasdaq: DIMD), a market leader in Internet multimedia subsystems, including 3D graphics, video, sound and modem products, has selected IMS International Manufacturing Services, Inc., as its manufacturing partner for several of its new products. "These new programs, which commenced volume production in February, are exciting for IMS, as it strengthens our existing relationship with Diamond Multimedia and further recognizes our low cost structure and manufacturing strength," stated Robert G. Behlman, founder, president and chief executive officer of IMS. IMS will manufacture the new products in its China and San Jose facilities. "Partnering with IMS will provide Diamond a competitive advantage in a short time-to-market cycle. IMS' flexibility, high service and quality levels and world class manufacturing facilities are additional reasons for our decision to manufacture these products with IMS," said Larry Elizondo, Vice President of PCA Operations for Diamond Multimedia. International Manufacturing Services, Inc. provides a broad range of advanced, integrated electronics manufacturing services to electronics original equipment manufacturers primarily in the computer peripherals, data communications and telecommunications markets. The Company's services include product design, prototyping and printed circuit board and final system assembly. Information regarding International Manufacturing Services, Inc. can be found on its web site at ims-us.com or to receive a facsimile of this or other press releases at no cost dial 800-758-5804 extension 125575. SOURCE International Manufacturing Services, Inc. /CONTACT: Iris Grable, Vice President, Marketing of International Manufacturing Services, Inc., 408-953-1000/ /Web site: ims-us.com (IMSX DIMD) Headlines Next Story

To: lml who wrote (3421)	2/25/1998 11:24:00 PM
From: Eric Winterhalder	Read Replies (1) \| Respond to of 4679

Here's First Call's earnings consensus. It shows a fairly large spread between the low and high estimate for the FY ending Dec 98. Based on the company's performance in the last Q of 97 and given the recent OEM/Intel agreements I'd say the .44 figure needs to be updated. I don't know who the analyst is but IMO he/she needs to come out with a revised estimate. If they just equaled their 4Q FY97 earnings (.20), that leaves .24/3= .08 a Q for the next three Q's to make .44 . I would estimate that they'll do, at a minimum, double that on average or 3 X.16=.48 for the three Q's. This gets us to about .68 for the year. IMO a reasonable PE for this co is around 25 again based their recent OEM/Intel contracts in what appears to be a segment of the industry that is undergoing very strong growth. This gets us to around $17 as fair value for this stock. DIMD Diamond Multimedia 02/23/98 Industry: Comp-wo IBM SIC: 3577 Latest Price: $12.75 1998 P/E: 19.9 Analyst Recommendation: 2.3 QTR QTR FY FY Mar 98 Jun 98 Dec 98 Dec 99 --- --- -- -- CURRENT MEAN EPS 0.19 0.11 0.64 0.84 Number of Brokers 5 5 6 5 Median 0.18 0.12 0.67 0.85 Standard Deviation 0.02 0.03 0.11 0.14 Current High 0.21 0.15 0.80 1.05 Current Low 0.16 0.06 0.44 0.62 Year Ago EPS -0.17A -1.29A -1.33A 0.64 Current vs. Year Ago Change 212% 109% 148% 31% Report Date wk/Apr 17 wk/Jul 17 wk/Jan 22 - EARNINGS ESTIMATE REVISION MOMENTUM Up Revisions last 7 days 0 0 0 0 Up Revisions last 30 days 0 0 0 0 Down Revisions last 7 days 0 0 0 0 Down Revisions last 30 days 0 0 0 0 EARNINGS ESTIMATES CONSENSUS TRENDS Current Mean 0.19 0.11 0.64 0.84 7-days ago Mean 0.19 0.11 0.64 0.84 30-days ago Mean 0.19 0.11 0.64 0.75 60-days ago Mean 0.11 0.05 0.49 0.70 90-days ago Mean 0.11 0.05 0.50 0.70 COMPARATIVE ESTIMATES AND TRENDS Industry - Comp-wo IBM 10.26 11.80 49.32 60.06 Current vs. Year Ago Change 14% 23% 26% 22% Sector - TECHNOLOGY 8.58 10.17 42.19 54.23 Current vs. Year Ago Change 4% 11% 18% 29% WSJ/DJ US Index 10.49 11.80 47.83 52.97 Current vs. Year Ago Change 5% 10% 12% 11% Ratios Relative To: Company Industry Sector WSJ/DJ P/E on 1998 Cal Yr Mean 19.9 21.83 24.50 20.55 PEG on 1998 Cal Yr Mean 1.05 1.23 1.39 1.66 RECOMMENDATION AND GROWTH RATES RECOMMENDATIONS LONG TERM GROWTH RATES Current Mean 2.3 Next 5 yrs - Median 19% Number of Brokers 6 Number of Brokers 2 Industry Recommendation: 2.1 Industry Growth Rate: 18% 7-days ago Mean 2.3 Next 5 yrs - High 20% 30-days ago Mean 2.3 Next 5 yrs - Low 18% 60-days ago Mean 2.0 Last 5 Years 14% 90-days ago Mean 2.0 Diff. from Industry -0.2 Rel. to Industry 1.1 Diff. from Sector -0.3 Rel. to Sector 1.1 Diff. from WSJ/DJ US -0.1 Rel. to WSJ/DJ US 1.5 Transmitted: 02/24/98 08:25 (E_DIMD) EW

To: lml who wrote (3421)	2/27/1998 11:11:00 AM
From: John Coltrane	Read Replies (1) \| Respond to of 4679

Hello lml, great post, though I cannot help thinking that the below thought is not quite complete, a couple of questions come to mind: <<<Nothwithstanding all the controversy over the Voodoo II chipset boards, stock price performance is not surprising. Why? DIMD's overall market is about to take off. It has scored some major hits with Dell & now aligning itself with Intel, by supporting the 740, which is just the beginning....>>> To what do you precipitate Intel's decision to manufacture and supply chips to OEMs rather than manufacture complete add-in cards themselves? Also, what do you anticipate for DIMD upon Intel's eventual move of the i740 to the motherboard itself. ---------- To all, It is my philosophy to simply FOLLOW the technology, which will lead to the "hot" companies and to buy and sell points as well. If the technology of a company or industry is of little benefit in your investment/trading philosophy read no further. <<<...Intel want a share of the graphics chip market & it will not settle for a small segment.>>> I take the above to mean that Intel's motivation for the i740 is purely to accrete to their bottom line, and as a result they desire to grab as large a share of the graphics market as possible. From what I have learned the i740's purpose (and consequently any market share it achieves)is evident of Intel's desire to CONTROL the development of any and all subsystems that effect the importance/margins of Intel's CPUs. There exists a developing trend for graphic subsystem developers to move video/3D rendering capabilities, the "Geometry" load, off the CPU and onto the video subsystem, thus achieving greater "performance". On the face of it, this development would not be in the best interest of Intel, as it could possibly lead to an "equalization" of CPUs. In effect Intel might lose its (FPU) advantage over its competitors such as AMD and Cyrix. Thus, we have AGP(regarding memory) and now the i740, developed not by Intel, but by an outside contractor. If I recall correctly, Intel has a successor chip under development which also is being outsourced. The fact that Intel does not "own' this technology outright is telling. Tom's visit to the "Microprocessor Forum 1997", sysdoc.pair.com A site which gives a basic understanding of Geometry and Rendering, as well as 3D in general, brandonszone.com I hope this adds to the discussion.