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Technology Stocks : ESST-the new beginning. -- Ignore unavailable to you. Want to Upgrade?

To: Steve Reinhardt who wrote (2189)	12/11/1998 1:40:00 PM
From: view	Read Replies (2) \| Respond to of 3493

My personal opinion is that ESS has to improve their gross margin and stabilize it around min 40% to get a PE of 15-20. They are in commodity PC audio, Modem, and video business which will be hard to imagine that they can do that in sustainable manner. Even when they had a chance, they blew it themselves by dropping the Video chip prices for hope of getting 70% of market share, and they ended up shooting themselves in the foot. In terms of passive PR. After the last 3 quarters of negative pre-announcement, do not expect an aggresive PR. They may get sued.