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

To: David L. Wasylenko who wrote (13327)	6/16/1999 9:10:00 PM
From: Jeff Lins	Read Replies (2) \| Respond to of 16960

Have a look at a 5 min. chart of monday morning...sold some at about 10:00...wonderful timing. Now I own QWST again... I still have a fair amount, and I think the stock is a good by at the moment, but I am confused about recent activity. Insider selling doesn't crush me...I look at insider buying as a positive, and selling as somewhat moot...though widespread selling makes me think... The confusing part is TDFX's relationship with Interact. Interact is a MAJOR player in the console accessory/controller market. I have not seen the PC products, but as a general rule, I consider Interact to be low end merchandise. Sure I use their Playstations controller extension cord...but I wouldn't buy their PC controllers. Only CH and Thrustmaster there. So I am concerned that we are in bed with a company that is significant in a line of business which we are not (consoles- unless this portends future developments), and may be low-line for our primary audience- PC users. While I like the idea of getting our name out there, I certainly don't want to dilute our status as a "premium" part. I think that it can also be confusing to the consumer. Put a Nike logo on a box of Wheaties, and anybody can make the connection. I don't think this is the case with TDFX and a joystick. After the expensive, and somewhat vague advertising campaign and this latest move, I don't think that TDFX is making effective or efficient moves to entrench or strengthen the brand. As for the stock buyback- I only liked 'em when I was trading. Could often get a bit of a pop out of it (a particular thanks goes to CREAF for last Dec...), but when you are investing in a company...its crap. It is a salary expense that flows not down the income statement (Yoda impression). The buyback will prevent dilution...but when the options are eventually exercised, even though your share count will be where we are today...our little checking account will be that much smaller. Options and greed will eventually come back to haunt us and the markets, I am afraid. Of course, they might also never actually buy a share back or go crazy with options...this could just be TDFX warming up to the idea of trying to convey to the world that TDFX is undervalued.