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Technology Stocks : 3DFX

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To: Sun Tzu who wrote (5996)8/4/1998 5:44:00 PM
From: Patrick Grinsell  Read Replies (2) of 16960
 
Cash use...
<<3Dfx's product is completely a discretionary item and an economic slow down or the public's perception of "poorness" (say due to falling stock prices) will take a big bite out of their revenue. The cash can mean the difference between life and death for the company (litterally) should such a slow down occur.>>

If we reach the point in time that 3dfx is losing money, which means sales have dropped under 20M, we are already screwed and should be heading for the hills. This would mean Banshee is a failure and Voodoo2 is done with no real replacement.

I think I'd rather that they were proactive in putting their money to use rather than waiting for the sky to fall. Cushions are only good if you plan on sitting on your ass! :-)

Pat
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