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Technology Stocks : 3DFX
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To: Andrew Fenic who wrote (4315)6/18/1998 7:53:00 PM
From: Hal Rubel  Read Replies (2) of 16960
 
A Hasty Press Release -Not as Reassuring as it Might Have Been

RE: "Their strong statement confirms that 3DFX's silence has been devastating for the stock. Their strong statement confirms: 1. The market is strong and earnings will stay good. 2. They do not consider Intel a serious competitor. 3. They retain a strong healthy relationship with Diamond. 4. There is no "hidden news.""

Right on Andrew!:
Your summary is better than their whole weak press release. They should hire you for their PR department. I feel if that is actually what they wanted to say, then those are exactly the words they should have used to say it. Try this on for a press release:

Begin.
Part I. I would like to address some important issues by stating that ...
1. The overall market demand for our products remains strong meaning that our margins and earnings will remain strong.
2. We at 3DFX do not consider Intel to be a potential serious competitor in our high end sector of the market.
3. We at 3DFX retain an especially strong & healthy relationship with Diamond Multimedia.
4. We at 3DFX know of no adverse "hidden news" that would affect the value of our shares."

Part II.
(Then the Press release, but without the glaring typo about Diamond's purchases for next quarter).

Part III. To summarize ...
(Repeat the 1 thru 4 items above.)
End.

A weak press release is indicative of weak selling skills. Why make it the reader's responsibility to divine the speakers intent at his own risk. Sell us on 3DFX. We are especially ready, willing, and able to be pitched.

Hal

PS: IMHO, the 3 basic rules of effective press releases are:

A." First you tell 'em what you're go'na tell 'em.
B. Then (and only then) ya tell 'em.
C. Then ya tell 'em what ya told 'em. Ahmen" (from an old joke)

Of course, this presupposes that the speaker understands the issues people are interested in having addressed well enough to 1) prove it up front by listing these issues in advance to cement audience attention, and 2) to prove it at the end to reassure the audience that their needs have been answered. HR
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