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

To: StockJock-e who wrote (3851)	11/25/1998 1:11:00 PM
From: PACKRATCAT	Read Replies (1) \| Respond to of 4679

Anyone have an answer? Don't get me wrong, I'm long. Anyone know how long DIMD has been producing the RIO? At a full bore 10,000 a week for say...3 months is only 120,000 to sell. I would guess these would sell out instantly and they would have an increasing backorder situation. On the bright side, the company has several hot items selling at the same time. My WAG is a doubling in the share price by March. Matthew

To: StockJock-e who wrote (3851)	11/25/1998 1:40:00 PM
From: Matt Kaarlela	Read Replies (1) \| Respond to of 4679

OK stock jocke, I have to respond to this one. You say maybe MM's just pumping up price...I say a stock's price is at least to some degree a reflection of the forward looking earnings projections times some multiple. Without getting into the multiple part, if RIO is profitable which I think we all agree it is, then that means higher earnings. Higher earnings justify higher stock price. I would expect a manipulation issue only if there were no increased earnings to explain a run up in price. I don't think that is the case with Diamond right now. They have a respectable graphics card line, a good line of V90 modems (shotgun is a plus), and now the RIO. When you factor in the recent restructuring which means lower overhead costs, why wouldn't this one go up. Maybe I'm missing something but I see this as extremely positive for the stock right now.