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

To: Eddie Kim who wrote (2648)	3/2/1999 4:48:00 PM
From: James Wright	Read Replies (2) \| Respond to of 3645

"I personally don't have a clue as to why this stock is going down." Eddie -- I'm not long or short right now with NMGC. However, I suggest that the recent down trend is no mystery. The fact that NMGC closed at a new 52 week low today should cause alarm to anyone following the stock. As you may recall, I have successfully tracked NMGC both up and down through several cycles over the last year. This time, however, I'm not convinced that NMGC will recover -- at least, not anytime soon. IBM recently announced new technology, involving copper based chips, that could make NMGC obsolete. According to IBM, its new technology will result in chips that combine integrated memory with core logic, using a much smaller foot print than is possible with the current technology used by NMGC. Combining memory with core logic has been NMGC's claim to fame, and now IBM has announced an apparently superior way to play NMGC's game. The prevailing fear over the last year that Intel would stomp on NMGC proved to be unfounded. Instead, it looks like IBM will be the executioner. Anyway, that's my analysis and that's why I'm staying away from NMGC this time around. Also, regarding stock manipulation by MM's, I suggest looking at SALT / SPF. SALT right now is my largest holding, having bought at around 18, and is one of the most promising stocks I've seen in over a year. About a week ago, it switched from NASDAQ to NYSE and it now trades as SPF. Look at the difference in the daily volume and trading range since the switch. SALT typically would swing a couple of points intraday while on NASDAQ, with wide spreads and sporadic volume. Since then, it has been very stable and the volume and price do not fluctuate like crazy. Frankly, I like stocks with steady growth rather than wildly swinging stocks. I've seen the same difference with other stocks that have switch from the MM controlled NASDAQ to the NYSE. -- Jim