What do we know about milestone dates of NVDA? I am considering a pair trade of long TDFX--short NVDA which in theory should remove the sector risk out of the equation. The logic goes like this: TDFX is about 50% undervalued relative to NVDA, and TDFX has positive momentum while NVDA has negative momentum. I know the TDFX side of the story pretty well, but I don't know when NVDA will be announcing earnings and when will TNT2 hit the streets, as well as other critical info that I don't know that I don't know <g>. I expect NVDA to beat the estimates due to the pick up for its chips by former TDFX customers. On the other hand, next quarter they should suck as V3 will beat TNT2. So for NVDA, everything revolves around TNT2. 3dfx on the other hand, can make optimistic projections even if things don't go its way because the merger will give them a lot latitude on how they can present themself (though given the history of their PR, I doubt they'll make good use of it). Anyway, discussing this idea here may be instructional, even if we don't do the trade.
Sun Tzu |
