Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Michael G. Potter who wrote (13792)	7/22/1999 12:32:00 PM
From: Obewon	Read Replies (1) \| Respond to of 16960

The Street doesn't care about the merger charges as much as it does for what margins and operational cashflow is going to be. I also think that more important than high profitability (at first) is earnings consistency. THAT is why ATI is valued so highly and why Nvidia has a much larger market cap (OEM sales are more consistent). To address the recent easing down of TDFX's share price, I can only say that it is a consistent pattern in TDFX's share price that starting with earnings the price falls for the next two months before rising the month prior to earnings. I have started accumulating more in anticipation of very good earnings this quarter. One small point on the 3dfx rebate program. The 10-20% rebate return rate that has been mentioned is for products with the rebate clearly advertised on the product (usually via a sticker coupon). Thus, every product sold has a good chance of the consumer seeing (and responding) to the coupon. 3dfx has chosen the stealth mode of making the coupon available on the Internet. Probably 90% of all consumers who buy the product is not going to realize it's there. My personal estimate is that the company will only see a response rate of approximately 1-2%. Obewon