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

To: Jeff Jordan who wrote (1193)	1/4/1998 10:54:00 PM
From: Gary Hoyer	Read Replies (2) \| Respond to of 16960

Ahh, 12 month price predictions. The short answer, who knows? The optimistic answer is the high 20's, low 30's. The keys to the optimistic answer in my mind are: 1. Continued gains in market share and mindset. 2. Continued sales growth that beats current estimates. 3. Continued earnings growth that beats current estimates. Zacks has the consensus EPS growth over the next 5 years at 30%. That's pretty good. 4. Momentum players. Man, these guys can really make a stock move. Surprises that could make the optimistic price occur sooner: 1. A BIG upside earnings surprise and enthusiastic forward looking statements. Probably 100% or more EPS increase over 3Q will do it. My BIG caveat to a much higher stock price is the P/E ratio. Currently, TDFX is selling at around 44 times next year's projected .50/share. That's NOT cheap! Today's price is already factoring in great earnings growth so TDFX needs to show us that the analysts are indeed conservative with their projections. These are my opionions and should not be taken as investment advice, Gary