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

To: Javelyn Bjoli who wrote (3567)	5/12/1998 8:10:00 PM
From: Jonathan Quick	Read Replies (3) \| Respond to of 4679

Javelyn, Don't get me wrong, I think it's great that they've finalized recognized that multimedia equipment is increasingly being integrated onto the system board. What I question is whether moving into motherboard production is the solution to their problems. Margins aren't going to be impressive. This company needs to evolve into growth areas that offer higher margins instead of further entangling itself in areas with less long-term growth potential and even fiercer competition than has been encountered previously. From where I'm sitting it looks like they just added yet another commodity product to a lineup that already consists almost entirely of commodity products. What technologies can't, or won't, be commoditized as severely? I'd lean towards equipment like monitors, flat panel displays, scanners, and external speakers. Seems like Diamond is also missing opportunities in digital imaging, an area where you'd think they'd have some degree of strength if they'd just make some effort. Still looks like a pretty marginal company to me, right now. Jonathan