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 : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: greenspirit who wrote (10794)	4/9/1998 10:30:00 AM
From: Brad Patton	Respond to of 13925

The good and (maybe) bad news. -- Diamond Multimedia Systems Inc. (DIMD - news). said Thursday it expects to face some pricing pressure during the second quarter. The company's first quarter results, a net profit of $7.9 million, or $0.22 per diluted share, came in a few pennies ahead of the latest Wall Street consensus forecast of $0.19. The good news is if a company as poorly run as Diamond can beat estimates by %15 than hopefully so can Creative. The potentially bad news is that DIMD expects pricing pressure in the second quarter. I personally would like to attribute this to Creative more aggressively entering the graphics card market plus lower prices on other items (like DVD). However, the Street may see this as an industry problem and take Creaf down as well. The positive to being with Creative vs. Diamond is that the fundamentals are much stronger with Creaf so we shouldn't fall as far.