3DFX Message Board - Msg: 5408568

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Technology Stocks : 3DFX

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To: Simon Cardinale who wrote (5989)	8/4/1998 5:32:00 PM
From: Patrick Grinsell	Read Replies (2) of 16960

Simon, I disagree... I was going to attack your arguments point by point but after Robert's comments, I'll stay "succinct". <<Basically they're doing so well under the current model (except for the stock price, but manufacturing boards wouldn't solve that) they shouldn't even consider changing unless their market dominance becomes overwhelming.>> The problem is they aren't doing the same thing anymore. They are going after the OEM market. In 1997 and the #1 and #2 OEM players were Matrox and ATI. Guess what their model is? In addition, low growth=low stock price. If a merger enables 3dfx to triple earnings this would be preferable to the flat 1999 that analysts currently forecast. The bottom line is greater earnings make for a higher stock price. Like a said, a merger with Quantum3d could enable them to sell OEMs and still sell retail to current IHV's. Quantum3d only uses 3dfx hardware anyway and the relationship is very close. This should enable them to make 3 or 4 times what they are currently making per OEM unit and make any price cutting much more palatable. I disagree with all your points but #1. Nothing personal, just my opinion. Pat P.S. Congrats to me and JEFF!!!! I noticed we don't have the "(trial member)" by our names anymore. WOOHOOO!! Thanks for helping me on-board guys.

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