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Technology Stocks : 3DFX

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To: Simon Cardinale who wrote (7190)9/15/1998 8:30:00 AM
From: Joe C.  Read Replies (1) of 16960
 
At this point, selling tommorrow would be like giving away the stock to the big boys.

1. Their focus on maintaining margins has probably caused the short fall in revenue this quarter. Rather than drop prices to sell more chips into a seasonally bad quarter they held prices hoping that Banshee would cover the short fall - of course this is just a guess and it infuriates me that they have not been more forward about this.
2. Investor sentiment for the small cap market is quite low.
3. Short volume is so high brokers are warned to make sure they can borrow the stock before they allow customer short sales.
4. The value of the stock is quite close to book/cash value already.
5. PC sales look promising for Christmas witness Intel's very postive statements.
6. OEM's have selected Banshee and they will sell many chips in the OEM market - huge future growth for such a tiny company.
7. Their next generation of chips will truly be Voodoo 2 killers.
8. Growth of the PC gaming market and the Internet will explode.

Right now I'm extremely disappointed - not in the shortfall necesarily - but in how they manage disclosure of information to investors. I'm still very upset with the press release because it tells us almost nothing and gives an extremely negative perception of the future of the company. I strongly believe that both of these are unwarranted at this time. Sellers needs to get on the phone to explain what is going on. Joe C.
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