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

To: Jonathan Quick who wrote (3718)	10/10/1998 6:17:00 PM
From: PaperChase	Read Replies (1) \| Respond to of 4679

>>This is a company that desperately needs to diversify away from low-margin commodity products with short shelf lives. << I am under the impression that nearly all components in a PC are now commodity products. So which strategic direction does this company take to become a non-commodity company? Don't worry about DIMD management later taking credit for your ideas as they are mostly clueless.

To: Jonathan Quick who wrote (3718)	10/10/1998 9:33:00 PM
From: AmericanDane	Read Replies (1) \| Respond to of 4679

Unit volume growth in PCs is good for DIMD because it puts out there more slots for their add-on products. Its basically the razor for DIMD's razor blades. Believe me the qtr was a disaster, I agree. The price protection was the part I was aware of. The part about lowering inventories so they could not ship against a very strong order book was really something so bizarre as to defy comparison. I've heard of getting short of parts when there are shortages, but to intentionally lower inventories in a manner that you could have the kind of shortfall that occurred here is really beyond description. The music industry thing I really don't have a comment on. Its typical of the music industry to stonewall anything that threatens sales (e.g. DAT). Its a losing battle, but they could very well hold things up for a long time. My interest in DIMD hasn't been based on this product, but more the graphics and telecomm pipeline which is still good. Anyway, I'm a loser on this one. The only good news is that company starts the qtr with a terrific backlog and vigorous PC sales. Hopefully they can get something out the door.