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Technology Stocks : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: cirrus who wrote (2609)	2/20/1999 3:41:00 PM
From: Fred Fahmy	Respond to of 3645

Tom, These types of perceptions have been going on for years. If you would have believed the pundits...all modem makers and graphics chip producers would have been out of business a long time ago <gg>. Remember, the big scare about Intel putting modem functions on the chip too. What about NIC on the motherboard?? Intel was suppose to end all competition there too. Have you checked COMS P/E lately (they specialize in NIC and modems)? No one seems too concerned about Intel put them out of business, even thought that is much more likely since Intel does sell a lot of NIC solutions. BTW, Intel is and always has been my biggest holding, but their threat to NMGC is greatly exaggerated. Intel is putting graphics instructions on the chips which work in conjunction with graphics chips. They are more complementary then competing. I do believe you are correct, however, that perception (or ignorance, IMO) does keep people worried about NMGC's business going away. Their diversification into possibly the hottest two segments of technology (DVD and digital camera's) should help change that perception with time. A couple design wins in these fields should change the overall picture dramatically. Good luck to all, FF

To: cirrus who wrote (2609)	2/20/1999 4:12:00 PM
From: Mad2	Respond to of 3645

Tom The basis for the stock drop is a combination of price errosion with the pc makers and the rising fortunes of the semi's and fab's. NMGC's discounted prices assumes NMGC will continue to lower price to maintain market share and better utilization of fab capacity will lead to pressure on the cost side. For NMGC to gain upside potential they need to make meaningfull progress into new markets. As NMGC isn't the type of company to telegraph their progress to the market, the best source will be news provided by their customers and or analyst coverage.

To: cirrus who wrote (2609)	2/20/1999 8:06:00 PM
From: Scott Moore	Read Replies (2) \| Respond to of 3645

The same concern was expressed on the CREAF thread 2 years ago, in that MSFT and INTC would squeeze them out any day. So, CREAF income continued to increase for the following year, made new highs, and then only after it was apparent that the Vibra chipset would be history from most notebooks and royalties were being lost on bottom-end SB16, did price erosion finally occur. Even after all that there were the die-hards that still kept CREAF's price up hoping AWE64 and SBLive would be the savior. Granted CREAF has hard assets and cash on hand, but look how well optimism has made the price rebound even when basic logic should tell everyone that without a silver bullet the future look pretty bleak. Now S3 is another good example. They really never lost the momentum to recover on dips, until the company themselves came out and announced shortfalls on the actual earnings date about a year ago. Then shortly thereafter it was apparent that STB who was using a lot of S3 chips was being pounded by ATI in the box maker arena. S3 has been a wounded puppy ever since. NMGC will recover when the overall market gets out of this burp. It may last another 6 or 7 weeks. It is all up to the company now to use that R&D that they've spent to not repeat the CREAF and S3 legacy. Cheers