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

To: Synapsid who wrote (2220)	1/8/1999 1:04:00 PM
From: Steve Reinhardt	Read Replies (1) \| Respond to of 3493

ESS announced the MP3 news at 8am EST and stocks suddenly shot up at 11:43am, (which is 8:43am PST), you can call it delayed reaction to the MP3 news. My guess is there is a lot of people in California (perhaps a lot more in Silicon Valley) closely watch ESST. They have made a lot money with it, they have lost a lot of money with it, too. When they read the MP3 news, they decided it is a good news for ESS and they put in buy order. And that volume also will trigger investors elsewhere. MP3 is in the trend. Play Internet downloaded high quality CD audio on an ESS enabled chip / platform. Neat. It will just grow more popular year after year. I expect ESS to have a good quarter to be announced soon. I suspect the company actually will do better than they plan to announce. With a capable CFO, he knows how to build up a company value gradually. Therefore do not buy ESS for short term gain. All indications shown that ESST will be a good long term investment. My reasoning is as follows: ESST focuses on SVCD shipment in China for the next two years. They work on DVD design-in wins but remain very quiet about it. You will never know when DVD will explode in China. David Nadaline of Microsoft is of the opinion that it will happen sooner than I thought. My recommended strategy for the ESS management, as a shareholder, is to sell SVCD as much as possible but switch to focus on DVD when it jumps. Let's face it, how can C-Cube even compete with ESS in China? There is voice inside Cube to kill all commodity-like chips like VCD, SVCD and even DVD decoders. There is voice from the Divicom subsidiary that says its revenue is 60%+ of the company and profit is even more. With that kind of split personality, I doubt very much that Cube can be a long term player in the video decoder market. Maybe Umesh Padval can change that. Just hope that he can not prevail!