Stock Market Chumps..........9-28-06

TVIA Inc. (TVIA)

Last Trade:	1.50
Trade Time:	9:59AM ET
Change:	2.00 (57.14%)

Tvia Inc., a maker of digital display processors used in flat-panel televisions, said Thursday it expects to report a sharp drop in fiscal second-quarter revenue as TV manufacturers cut production because of supply problems with liquid crystal display panels.

Tvia expects revenue in the quarter ending Sept. 30 between $300,000 and $400,000, down at least 92 percent from last year's $5.1 million.

The company expects LCD panel availability to improve in the coming period, which it anticipates will increase demand for its products

But Tvia also said it is "continuing to experience competitive pressure resulting from price decreases by other processor manufacturers."

The company's shares were sharply lower in early trading on Nasdaq, falling $2.11, or 60.3 percent, to $1.39.

Novatel Wireless Inc. (NVTL)

Last Trade:	9.3799
Trade Time:	10:00AM ET
Change:	2.3301 (19.90%)

Shares of modem manufacturers Novatel Wireless Inc. and Sierra Wireless Inc. fell in pre-market trading as investors considered increased competition and lower prices for products giving computers network connections.

Novatel dropped $1.66, or 14 percent, to $10.05, while Sierra Wireless fell $2.47, or 20 percent, to $10.13 in pre-market trading.

Analysts agreed the news wouldn't have much effect on the modem makers' business until Intel begins selling the embedded module to vendors in late 2007 as part of its next-generation Intel Centrino Duo mobile technology platform.

Analysts were mixed on what would happen after that. CIBC World Markets analyst Ittai Kidron said Novatel and Sierra will in the meantime jump "a step ahead" in its relationships with vendors and suppliers, and by the time the new module is introduced Nokia be playing catch-up.

But Cowen analyst Matthew Hoffman said the partnership will limit Novatel's market opportunities. He downgraded Novatel to "Neutral" from "Outperform." ThinkEquity analyst Mike Burton also downgraded Novatel, to "Accumulate" from "Buy" because of increased competition.