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

To: BlueCrab who wrote (2890)	4/27/1999 9:11:00 PM
From: Mad2	Read Replies (1) \| Respond to of 3645

Not a factor in Laptops. NMGC's malaise is due to competition however and the margin decline reflected in the incremental new numbers from last quarter. IF you believe this trend and extrapolate you have a compelling case for NMGC staying in the tank. If however NMGC demonstrates margin stability (or praytel margin growth) well buckle up for a nice ride. Margin analysis is key!

To: BlueCrab who wrote (2890)	4/28/1999 4:12:00 AM
From: Mani1	Respond to of 3645

BlueCrab, Re <<THink this might be the cause? If so, the street is misguided..>> I don't know, but you are right to say that if so "the street is misguided" I think NMGC is down for 3 reasons, 1. Competition, from the likes of Trident which is pressuring margins 2. Work on integration of the graphic functions into CPU or motherboard, these work are being done by big boys like IBM and Intel 3. Market saturation, at %65+ market share there is not a whole lot of room to grow market share All these should justify a PE of 25 for such fine managed, fiscally solid, growing high tech company. It beats me why it is trading at PE of 10 while it is increasing revenues and sales and exploring other markets. Mani