3DFX Message Board - Msg: 5406449

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Technology Stocks : 3DFX

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To: Sun Tzu who wrote (5986)	8/4/1998 2:53:00 PM
From: Patrick Grinsell	Read Replies (1) of 16960

Mergers & Conspiracy Udpate... Got an e-mail from Billy at Voodooextreme. He says 3dfx asked him to change his post for the contest because the contest deal with Creative fell through. Looking at STB's balance sheet yields some interesting information. STB is has a book value of 108M. Almost all of the assets are in inventory, AR, and cash. This is a good thing because asset categories like property and equipment can artificially inflate the book value. Anyway, current fully diluted market cap is 86M. Looks like a corporate raider would be able to make about 10M-20M on this company just by selling off all the assets. I point this out for two reasons. 1) This is a great potential use for some of 3dfx's cash. 2) Things could be worse. (i.e. trading under book value with a trailing PE of 6.6) I still think 3dfx should buy out Quantum3d and use that as their OEM card sales and use their regular IHV's for retail sales. That way they get the best of both worlds. Hell, at these prices they could probably afford to buy both. Pat "show-me-the-mergers" Grinsell

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