Having a long position in this company, I am basically waiting for everyone to realize what a great value this company really is. Unfortunately, 3dfx stocks seem unaffected by good profits, industry leadership, brand name recognition, or very much else up till now.
The company is in a period of transition, trying to capture a share in the huge OEM market, nevertheless, its core business is still viable and should prove very profitable this holiday season, and beyond, banshee is just the icying on the cake, being a gateway to tremendous growth (no pun intended).
The way I see it, the company's stock is hurt by the instability brought about by the large amount of short trading.
Perhaps the company should consider doing something to wake the market up, and reduce the ever-increasing short volume. A one time (or even regular) dividend payments will eliminate the shorts in one fell swoop, and will immediately appreciate the value of the stock, if the company can afford it. A statement of the company's future product plans might also help.
TDFX is simply not known for hype. They keep quiet, and only make announcements in the last minute. Perhaps their new PR firms will do something about this... so far, we haven't heard a bit from them.
As for the Sega lawsuit, or other potential short term good news, I think that will only make the stock even less stable, and further increase short speculation. |
