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

To: Kashish King who wrote (3558)	5/2/1998 12:58:00 AM
From: Jonathan Quick	Respond to of 4679

Rod, Pricing trends in the industry suggest that there may be problems with your "second rinse" approach to DIMD. With the additon of Mr. Schraith, and other changes commented on in the past, Diamond has improved over the years. The problem is that the industry is becoming increasingly cost competitive to the point where I suspect Diamond is finding it difficult to make up lost margin solely with volume increases. Oppenheimer previously indicated that DIMD would be an earnings superstar. Glad they woke up to reality. Jonathan

To: Kashish King who wrote (3558)	5/2/1998 9:29:00 AM
From: mantle7	Read Replies (1) \| Respond to of 4679

Amen brother. See my post# 3462. This is the start of the third annual dive to 6 during Q2. Look for a prerelease of Q2 earnings disappointment around the end of May. Q2 is always a disaster for these folks and they always get caught with their pants down with way too much inventory. They have a track record of believing their own overly optimistic sales forecasts. This management team also seems incapable of adapting or learning from the past. Still way too dependent on retail sales and thus spend an (out of control) fortune on S&M costs moving stuff through the channel. I got out at 14. Good luck to all.