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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (14160)	2/20/1999 9:21:00 PM
From: Ditchdigger	Respond to of 29382

thanks Sergio,passed it along to the yahoo thread--much more active--and actually pretty well behaved<g>..Especially liked the research report--nice to see things from a different angle besides the Rio..DD

To: Sergio H who wrote (14160)	2/20/1999 10:43:00 PM
From: Ken W	Read Replies (2) \| Respond to of 29382

Sergio, "perhaps if Ken W can find the time he can tell us what he likes about PRRR" What's not to like! Small rail co. 22% increase in net profit. 7% increase in revenue. Bought out another small rail co. to increase rail coverage to over 500 miles. Load factors for shipping customer product is up and expected to increase for the rest of the year. Price to sales is less than 1.0. float is under 3 million shares, ROA is great, ROE is also very nice. PE of 14 in a 20 industry. Hmmmmm what else is there.....Oh no real long term debt. Only one problem....NO TRADING VOLUME!!! As usual the gd "street" is missing the boat on a very nice stock. They are not looking at the obvious like GTNR, HRVE etc. These are not news stocks, nor CNBC mention stocks, Just forever stocks that are nice safe sleep at night stocks. Efficient valuation of the market my a$$. Oh yeah, the other thing on PRRR...it pays a div. just like clock work, not much, but a div. none the less. Ken

To: Sergio H who wrote (14160)	2/21/1999 5:43:00 AM
From: Ditchdigger	Read Replies (1) \| Respond to of 29382

Morning Sergio,,excluding Diamonds (DIMD) other core businesses (graphics cards,high speed modems,and Home networking products) I did a rough calc on the RIOMP3 player producing 10K units/week(minimun),sells for $200 (+/-),we'll use 25% profit margin (I read it was 30%), and 35mm shares outstanding 10,000 X 52 X .25(200)/35,000,000==.72/share earnings/yr (26mm revs.)..If the rest of the products break even...it would be a stellar year.. DD PS: They didn't start shipping the Rio until sometime in November, so it is difficult to say how much of their +.15/sh 4th quarter can be attributed to the Rio, vs other product sales and cleaning of the pipeline...upcoming finacials should really help out in understanding how we are progressing and managements effectiveness in getting their sh*t together<g>,so far, signs look positive.......

To: Sergio H who wrote (14160)	2/21/1999 7:31:00 AM
From: Ditchdigger	Read Replies (2) \| Respond to of 29382

Sergio, there is no question that down the road MP3 format will have to do battle with new formats (such as PAC) here's a pretty good article regarding LU and e.Digital. news.webnoize.com But for the time being my money is on MP3 and more importantly the Rio product name. The industry is realizing it's fallen behind.. "Once digital delivery standards have been set, Falk said, e.Digital hopes to become the hardware provider of choice for PAC licensees, much the way Diamond Multimedia quickly became the de facto leader in portable MP3 players with its Rio PMP300 unit." And it sounds like they know who is in the lead<g>..Brand name recognition is key to future success,the portal site/MP3 search engine will further this recognition-not to mention the free press from the law suit and association with MP3 music.....MP3 isn't going away anytime soon,it's already been around for a few years-word is just getting out...Have a good day,DD PS: looks like they began shipping the Rio on 11/23,so the 4th Q and 10K may not have much helpful data--1st Q will be the one to look at.. but one could assume, not much revenue from the rio went to the positive .15 4th Q..