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Non-Tech : Image Entertainment (DISK) -- Ignore unavailable to you. Want to Upgrade?

To: William T. Katz who wrote (132)	5/18/1998 11:14:00 AM
From: Jim Fraser	Read Replies (1) \| Respond to of 379

Bill, I am not as bearish on disk at is appears. Although I think nmbs is a better DVD play, for a couple of reasons. 1) Nimbus is not involved in the pain of LD sales drop off. 2) By the end od the year it is estimated that there will be about 7 million DVD-ROM drives out there and about 1 million DVD players. (DVD players have had about a 1 year head start on DVD-ROM) I belive NMBS is better positioned to capitalize on DVDrom then DISK is. 3) Nimbus is into all flavors of DVDs, including Divex & DVD-ROM. That said you still can make a buck on DISK ( as you have so deftly shown) on the take over play. My view of the DISK story is that the poor LD sales drove the Disk's stock price to below fair value, they are now involved in DVD and would make a nice buy-out move for a player wanting to jump start themselves into DVD. (after they cleanup the LD mess) DISK also (IMO) has better name recognition that NMBS. (Because of LD) As to when to get into NMBS. Lets put it this way, I doubt it goes much lower. Earnings come out this week ( I think the 22nd) and while this has historically been the worst qtr for the Co. I believe this is the qrt that shows the real promise of DVD. There should be some solid numbers in sales but more importantly DVD should be a larger portion of the revenues (showing real growth). BTW Nimbus has a habit of rising 10-20+% just prior to earnings announcements. One can play it that way too. My position is that I will hold my NIMBS stock through the new year (unless a miracle happens) and will buy a little DISK as a take over speculation play if it pulls back some. Good Luck to you Jim