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

To: Voomp who wrote (1253)	1/14/1998 12:17:00 PM
From: Frank Medvedik	Read Replies (3) \| Respond to of 16960

Pulled this off the fool's board. Grump, grump, grump " Today's Wall Street Journal's "Heard on the Street" has a story about TDFX and The Fool. It compares the trading of IOMG back in 1996 with the latest market action in TDFX since The Fool announced it's stake in the graphics company. The Journal interviews Charles Boucher, an analyst at UBS Securities states that just like IOM, TDFX's upside movement isn't as much from an improvment in the business as much as its a strong demand for the stock. Boucher even goes so far as to say "It looks like hype, investing in hot names without understanding what the company does and what the dynamics of the business are." He continued on by saying "it's always a dangerous sign. Things that the Fools recommend tend to get hyped. That has happened in the past." He also believes the stock could be vulnerable if the shares continue to climb. The article continues with some examples of posts from this message board, some of which are, shall I say, irrationally exubarent. (One interjection from me: I didn't notice one reprint of some of the very intellegent explanations of the business of TDFX I have read here.) In all fairness, though, the article does mention that The Fool has warned about the high risk involved with the purchase of these shares and also waited to add the shares, after the initial buy annoucement (which is exactly what they've always done. The Journal spoke with Gary Martin, TDFX's CFO who attributes the "wild action" in the stock to Motley Fool. He wouldn't comment further because of the upcoming earnings report, due out on Jan 27. To date, TDFX hasn't earned a profit. After a brief history and overview of TDFX's business and products, the article concludes with a few more comments from Mr. Boucher, who says the company still faces many challenges ahead, including the acceptance of Voodoo2 and Banshee in 1998, even though they have a strong product line and increasing market. Another risk is the multimedia chip industry itself, which is well known for short product cycles. Mr. Boucher is also concerned about the competition from industry giants such as Intel and Microsoft, as well. Wall St analysts are mixed on the stock, the article says, and 3 of the 5 analysts who follow the company rate it a "buy" (the other 2 rate it a "hold.") The analysts expect TDFX to turn in its first profit when it reports its quarter. Well, Fools, you are in the NEWS (but watch that irrational exubarence!!!) Foolish regards, Karen, A Fool and Chat Hostess, too "