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Technology Stocks : 3DFX

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To: buckeye3d who wrote (1013)12/4/1997 3:09:00 AM
From: Ralph Bergmann  Read Replies (1) of 16960
 
There is one main reason for the drop I could think of - dilution.
Maybe they want to start something new and need money for it.
But I can't imagine that they plan their own production facility ( would cost several hundred million dollars). Possibly they want to assemble their own cards.
Or maybe the xmas selling is not as good as expected?
I don't have the feeling the stock is too much overvalued. A PE of 30-40 for next year is quite normal for this sector.
But most probably it is a technical downturn after reaching some stop orders.

Ralph
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