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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Maya who wrote (39667)	4/6/1999 10:18:00 AM
From: Don Dorsey	Read Replies (1) \| Respond to of 50808

Circuit City's Divx Bet Dragging Down Earnings (CC) - Report (NewsTraders.com)-- Sales at Circuit City (CC) have been robust as the U.S. economy continues to fire on all cylinders, but its bet on Divx video technology is a huge drag on earnings, according to the New York Times. Highlights: - Divx is a technology where consumers can buy movie disks for $4.50 each with a viewing time of two days, without having to return them. The company sells both Divx disks and video players, which cost about $350. - Some analysts and investors wish the company would abandon the Divx plan. Salomon Smith Barney analyst David Strasser believes investors would say "good riddance" and the stock would rise if the company made such a move. - Divx ops -- known as Digital Video Express -- are expected to cut 31 cents off of Circuit City's earnings of 85 cents for the quarter ended in February. The company doesn't disclose Divx sales. - Getting consumers, movie producers, rental stores and electronic manufacturers to embrace the technology has and will continue to be a daunting challenge. - The company is rumored to be seeking another investor in Divx. - "Divx just adds to the confusion of the Circuit City story," according to one fund manager who has been adding to his stake. He thinks the company could trade higher if the company would focus on its core business of selling electronics.