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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Grinsell who wrote (13179)	6/9/1999 11:12:00 PM
From: Marc	Respond to of 16960

Isn't that the same guy who started the CREAF rumors a couple months ago ?? MArc

To: Patrick Grinsell who wrote (13179)	6/9/1999 11:17:00 PM
From: Obewon	Read Replies (1) \| Respond to of 16960

IMHO there is no way 3dfx is going to shell out any money or shares for S3. If it had wanted S3's patents it would have scooped up S3 last fall when shares were trading around $3. Instead 3dfx decided to go with STB. All Ballard was doing was conceding that S3 has a good low-end product. Since Voodoo3 doesn't compete in that market, he can afford to be generous since the Savage4 is aimed more at 3dfx competitors' products. Personally, I think that increased competition at the low-end is overdue. Until recently, no one could adequately compete against ATI so they had the market all to themselves. I compare the situation to the low-end processor market which AMD managed to wrest away from Intel until recently when Intel started beefing up its Celeron line. Most of the profit remains in the high end. Fortunately for us, none of the low-end graphic chip producers can design superior high-end chips; otherwise, like Intel, they could use their volume advantage to bury competitors. (Of course, except for Intel, none of the other graphic chip makers actually own a series of fabs or manufacture their own chips so this isn't as much a threat in this industry.) Obewon

To: Patrick Grinsell who wrote (13179)	6/9/1999 11:20:00 PM
From: Marc	Respond to of 16960

A funny wat to do business by nvidia , i got this out of the Russian guy at Reactor Critical: Hercules send the following letter to its resellers: "For each TNT2 Ultra chip Hercules also has to take 2 regular TNT2 chips from NVIDIA reflecting the current yield. We count on your understanding that we have to pass on this 1:2 ratio to all our customers without any exception. At this time we are still receiving more Dynamite TNT2 Ultra orders that we can book regular Dynamite TNT2 orders. However, for the time being we can only ship to you 1 Dynamite TNT2 Ultra for 2 Dynamite TNT2. Please verify your current open orders situation and adjust your orders accordingly. Hercules Computer Technology, Inc." In Russia we call it a "nagruzka" sales style. It can be approximately translated as "weight added sales". For example it is that kind of sales when you go to buy some milk and they say "we won't sell you any milk until you buy a primus". Those who lived in the USSR can tell you that this style of sales is the most cumbersome and idiotic method of eliminating the product shortage. So shame on Hercules. This however shows that there is a TNT Ultra deficiency. MArc

To: Patrick Grinsell who wrote (13179)	6/9/1999 11:36:00 PM
From: Piranha	Read Replies (1) \| Respond to of 16960

Is it possible for a SMALLER company to successfully accomplish a hostile takeover of a LARGER one? We all know from experience that a takeover announcement drives the price of the acquirer's stock down and the price of the acquiree's stock up. Even a modest move of only one point in each stock's respective direction would give SIII a higher market cap than TDFX. With a hostile takeover speculated, I think SIII would gain much more than just one point if a takeover was announced. Given these numbers, I think the rumor is just that, a rumor. Unless 3dfx has some amazing source of leverage that we don't know about..... FYI, one point in SIII equals $52M in market cap. Piranha

To: Patrick Grinsell who wrote (13179)	6/10/1999 8:59:00 AM
From: JAG	Respond to of 16960

Patrick, If you study the balance sheet of S3 you will find great hidden value in the fab investments that it has in USC and UMC. About 2 months ago I saw the President of S3 on CNBC. He stated at that time S3 would not entertain a sale. But he also said that S3's stock price was grossly undervalued based upon the "Gray" market value of its fab investments. I beleive this to be true, especially in light of the recent strong upturn. UMC and TSMC are running at full capacity and predictions are for a shortage by the 4th quarter.