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

To: Eddie Kim who wrote (2665)	3/4/1999 12:34:00 AM
From: Mad2	Read Replies (2) \| Respond to of 3645

Eddie, check the quarter over quarter change in sales and divide into quarter over quarter margin change. It shows a deteration of pricing ability. NMGC has good products and strong market share, however the numbers reveal a disturbing trend. Now if its an aberation than a long position will pay out, if not than it explaines the weakness in NMGC. I've got a IBM 380E with a NMGC accelerator and I never attempt to use it on battery (its NIMH)cause it won't last but 15 -20 min. I've got 15 people working for me and we all are heavey notes users, and no one even questions battery life. Laptops are portable computers but need to be plugged in. My point is price is a bigger differentiator than power consumption. Concerning the other markets for NMGC's technology it sounds like they're making the right moves however that potential is yet to be priced in and I imagine won't be priced in untill analysts have the ability to model revenue, margin and profit. Don't be so defensive, I been in and out of NMGC a couple of times, however this last time cost me a point and a half but got out and cut my losses once I figured out what was happening. Price and competition is driving the PC market with everyones margin comming under pressure. NMGC is doing great up in the high 30's, but your suggesting they can retain those margins and maintain above 50% market share. The market is voting with their money and that's why NMGC is soft. If it proves otherwise than NMGC should appreciate significantly.