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

To: Javelyn Bjoli who wrote (3569)	5/13/1998 8:45:00 PM
From: Jonathan Quick	Read Replies (2) \| Respond to of 4679

Javelyn, I don't think the "market" is pressuring Diamond into MM boards. In a typical blind fashion, the company is moving from one low margin product to another. I also strongly disagree with your assertion that large PC makers are ignoring the sub $1k segment. There is AMPLE evidence to the contrary. The company's present multimedia board-only focus is far too narrow. I do not agree that Diamond's boards are of "good" quality and I strongly disagree with any assertion that their drivers are "good." Diamond has always done the minimum to get by to be the low-cost producer. Diamond needs to quit defining itself as a multimedia board maker and start defining itself as a one-stop shop for multimedia equipment. With Intel's dominance increasing, boards are a dead-end. You're right that Diamond probably lacks the competence to internally develop products for entirely new markets. Diamond needs to diversify. Flat panel displays are a growth area. The margins on each and every piece of equipment I listed are higher than the pure commodity products Diamond has been pushing of late. I really believe that digital imaging (photography and processing) would be a great direction for this company to move, but I suspect that management is too tentative and too slow to react to market trends to make the change. The only thing good about the recent Diamond move is that it gives them the ability to produce set-top boxes as American consumers migrate to high definition television, DVD, and digital cable. Jonathan