To: MikeM54321 who wrote (2649 ) 2/23/1999 8:20:00 PM From: Hiram Walker Respond to
Mike, I had positions in all three,and have added to my position in DIMD. NT I sold at 60, not sure why,I think they are a great company,but the rise from the 20's to 60 seemed like a reasonable time to sell. NT has a great backbone DWDM system,and their acquisition on Cambrian positions them well in the MetroDWDM market. NT is a strong hold and on dips an accumulate in my opinion. DIMD is totally undervalued and underappreciated. They have three great markets and product cycles to turn this company around. Their 1 Meg ADSL modem alliance with NT should be super,NT holds a significant advantage in the ADSL market,and DIMD should profit nicely from the eventual roll out of G-Lite(especially in Canada). Their alliance with TUTS for the HomePNA market is strategic and will be fantastic if G-Lite takes off(it will connect well with broadband ADSL access technologies). Their HomeFree 2.4 GHZ wireless is a fantastic market to be in,but this also needs broadband access. I have read many revues and they are so so. The software and installation are very good, but the efficiency of their system is second to Proxim's. But one reviewer had broadband access,and said that solved all the problems. Proxim's wireless seems to work significantly better than DIMD's on narrowband access. The third market that will se exposive growth is the MP3 market,and they are really positioned well there. The RIO has had fantastic reviews,and is by far the best MP3 player in the market. The stock is down because of the lawsuit,but look at other companies in similar situations,two come to mind in the last year,SDLI and SUNW. After both lawsuits were settled both stocks absolutely exploded upward,and one decision was against the company,SDLI lost a huge lawsuit. DIMD is going to sit here,because people see risk inappropriately,the risk is minimal,they stock sells for less than half of its revenues,and they have cash and excellent book value. When this lawsuit is decided,in either way the stock will boom.
