RE: Dividend nonsense, PR, and 3Dfx response:
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).
Before the G200 and the specter of the TNT I would have agreed, but now I think long term growth is tied to a 2D/3D solution. 3D only can't keep making them money for more than a year or so. After that it's all Banshee/Rampage/whatever's next.
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.
I think you've got it partially reversed. The short trading is a cause and an effect of the stock's instability. A dividend payment at this point would look pretty strange to me, and I'd like to hear of any historical examples of companies doing this.
They've already stated their plans pretty clearly to my mind. They intend to capture a big chunk of the 3D and 2D/3D market, both OEM and high-end, by making a great product with good support from developers and gamers. More than that would give away to much to competitors.
What I'm very interested to hear about (and I just got back from my honeymoon recently so maybe I missed this) is what happened to the proposed stock buyback that the bigwigs were considering? Any word?
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.
You won't be hearing from them for some time. PR firms that jump in swinging with both arms get thumped hard. They'll develope a strategy before you see the tactics.
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.
The less I hear about Sega the happier I'll be. They're not going to convince the street of their long term profitability by winning a lawsuit. The less investors are reminded of this the better. Better than hearing we won the suit would be hearing that Sony is picking up 3Dfx and Glide for its next console.
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