To: Robert Kruse who wrote (740 ) 3/26/1998 6:06:00 AM From: wmj Read Replies (1) | Respond to of 7703
(EGHT) - This stock is going to move today!! This news just hit the street this morning. Check out the beaten-down price. This is going to be my next DGIV. I hope you all don't mind the tip...as we allow accumulation to take place on our beloved DGIV...while we wait for the press release that is surely coming SOOOOOOOOOOOON! :-) This sure beats a couple of dangerous ideas submitted on this thread last night IMHO. Please tell me your thoughts on this. I really value the collective abilities of this DGIV group. "Hidden Gems:" 8*8, Inc. (EGHT) - Are videophones finally here? By Jay Lasus - 3/25/98 It takes time for the public to embrace new technologies. This has proven to be the case with videophone technology, as the public still remains unconvinced of its potential. 8*8 (EGHT), a leading videophone technology developer, is hoping that this technology will finally capture the interest of the mass market. There are a few reasons why this company's product might just break through and achieve popularity and profitability. J&R Music World, a major electronic vendor in the Northeast, featured 8*8's ViaTV VC50 on the front cover of its World Spring 1998 Catalogue. Best Buy, a national electronic retailer, recently signed an agreement with EGHT to market their ViaTV VC50 videophone line. Even more important is 8*8's new marketing relationship with Ingram Micro, the leading wholesale distributor of technology products in the world. In addition, 8*8's videophone appeared on QVC on March 22 for the first time. The company is also gaining valuable marketing exposure by having MTV's popular show, Loveline, use the product on the air. This show is geared to a younger audience, a demographic that usually is the first to embrace new technology. 8*8's videophones are more affordably priced than many of the videophones that other companies have marketed in the past. A recent ad listed the VC50 at $249.99 after a $50 rebate. The ViaTV VC50 "works with any camcorder, TV and touch-tone telephone to allow consumers to make full color, motion video calls over normal telephone lines. No personal computer is required." The price of making a call using the ViaTV is comparable to the cost of making a regular phone call. 8*8's stock has been beaten down as of late because of a reduction in orders from a major customer for its videoconferencing and videophone chips, its primary source of revenue and profit at this juncture. In addition, the company has had to deal with the Asian slowdown because over 20% of the company's sales are derived from Asia. The company, however, has been able to weather these troubles and remain profitable. A debt-free balance sheet and significant cash reserve have helped. From here, the company's semiconductor lines are poised to grow because of the rapidly emerging digital camera market and booming videoconferencing industry. The wild card is if 8*8's videophone successfully gains consumer acceptance and popularity. Based on recent events this seems to be a realistic possibility. While there are no guarantees that 8*8's technology, particularly its videophones, will arouse consumer interest or withstand future competitive pressures from deep-pocketed consumer electronics companies, the prospects for 8*8 are intriguing.