Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: Solid who wrote (601)	3/14/1998 7:46:00 PM
From: gregor	Read Replies (1) \| Respond to of 3645

Here it is in print: Neomagic STILL has a power advantage of 1/2 watt compared to 2 watts for Intels expected introduction in mid 1998, due to it's embedded design. Toshiba is scratching their heads figuring out how to quell power hungry designs. ""Intel took steps toward that end last week when it formally introduced its 200- and 233-MHz Tillamook processors, consuming 3.4 and 3.9 W, respectively. By contrast, Intel's fastest Pentium 166-MHz processor for notebooks takes 7.7 W. "We've given back three or four watts to the notebook designers, so they can build higher-performance systems or extend the battery life by an hour," said Stephen Nachtsheim, vice president of the mobile group. Yet some OEMs said Tillamook is just a respite in the power battle. Indeed, power consumption will likely jump closer to Intel's self-imposed 8.0-W ceiling when the company unveils its 0.25-micron Pentium II for mobile systems, Intel acknowledged. On top of that, Intel plans to introduce the Accelerated Graphics Port (AGP) for notebooks starting in mid-1998. Some OEMs said that the dedicated graphics bus will add another 2 W to the equation, leaving precious few remaining watts within the 20-odd watt power ceiling for notebooks. "When we look at the AGP and Pentium II, then I have to say I don't know how we are going to handle that huge power consumption," said a notebook manager for Toshiba Corp.(( easy::: use Neomagic 128XD...DUH !!!!)) "The thermal environment is the No. 1 priority for my design team," said Arif Maskatia, vice president of the mobile-systems advanced-technology group for Acer Advanced Labs Inc. (San Jose, Calif.). "In the past, most power consumption used to be from the LCD. Now it's the processor." While Intel is holding fast to its 8.0-W processor allotment, it is beginning to take a hard look at other components it considers power hogs--notably, the graphics subsystem. "As we move toward faster front-side [processor] buses and AGP technology, there's a real concern that left unchecked you can take existing budgets and go up by a factor of 10," said Intel's Antone. He said the company will share with other chip vendors ways to reduce power consumption by splitting cores and throttling clocks. The emphasis could encourage more vendors to embrace less power-hungry graphics, such as embedded frame-buffer memories like those from NeoMagic Corp. (Santa Clara), which consume about half a watt. ( GO NEOMAGIC RAH RAH RAH !!!!) On the software front, the Intel Power Monitor measures an application's power consumption and allows developers to fine-tune their software. "It gives them a tool to see whether they're revving their engine when they're not doing anything," Antone said. Unlike other industry specs, particularly those imposed by Microsoft, Intel's new guidelines are not mandatory; (( INTERPRETATION ....INTEL WILL NOT CHANCE DESIGNING THEMSELVES OUT OF THE MARKET WITH PROPRIETORY DESIGNS AGAINST CURRENT STANDARDS )) Intel will not try to enforce adherence by certification. "We have not comprehended any kind of seal of approval or validation process," Antone said. "This is meant to be a means to laying out guidelines."

To: Solid who wrote (601)	3/15/1998 3:10:00 PM
From: vincenzo	Read Replies (1) \| Respond to of 3645

Sir Solid - You have joined the most lyrical investment thread on the planet. Thank you for honoring us all with your very timely efforts. It is true that my relationship with Neo has lost some of it's innocent blush as I have alluded to in prior posts. Please allow me to list my grievances unfettered by rhyme: 1. Float - At IPO 40% of the stock was held by four insider venture capital firms: KPCB Associates - 3,517,543 shares, Sequoia Partners - 3,517,543 shares, U.S. Venture Partners - 2,087,719, and Japan Ass. Finance - 1,350,877 shares. They have subsequently been released from all selling restrictions and can sell their holdings without notification under rule 144. 2. Selling Supply at $19 - I suspect that the large overhang of stock selling at $19+ originates from the above sources. Knowledgeable insiders selling into strength makes me nervous for some reason - particularly since they have such great wads of it. 3. Intel Mobil Pentium Two Roll Out - Intel PR's sophomoric intentions were not lost on me when they preannounced their new graphics chip the same day as Neo's last blowout earnings report. They will use the April 2 mobile Pentium 2 roll out to inflict maximum pain. Including announcing works in progress for stuff they don't have yet. 4. Pentium 2 Solution - Not helping matters is Neo's lack of a Pentium 2 solution. The compatibility of Neo's solution with the new Pentium 2 AGP bus is unclear. Neo is the undisputed leader in mobile graphics for the existing Pentium chip. Intel's very existence depends on obsoleting the Pentium as quickly as possible and moving the market to the Pentium II. 5. First Sequential Earnings Decline - My calculations show that the next earnings release will show the first sequential decline in earnings for Neo since it became profitable. By my estimates earnings will be .28/share down from .31 last quarter. 6. General Market Overbought - Topping it all off, the market is overextended at this point and is due for a pull back. In light of the above factors I have adopted a defensive and nonconventional strategy. I sold my entire Neo stake. If Neo breaks through $19 1/2, this will relieve my concerns about the avowed insiders and I will jump back in without a thought and give up less than a point as insurance. However, if significant selling pressure develops here as I suspect, then I will assume that the big knowledgeable holders are running to the exits with a sense of urgency ahead of the upcoming announcements. Caution is advised in this case until their motivations are clear. Please forgive me: Wenn lanzenstechen mit logik Scheint ein bisschen zu pervers. dann ordre dein denken mit grund und mit vers. vincenzo (If jousting with logic Seems a bit too perverse. Order your thinking With reason and verse.)