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

To: robnhood who wrote (1264)	1/14/1998 5:52:00 PM
From: William T. Katz	Read Replies (1) \| Respond to of 16960

Piranha, I think it is near certainty that TDFX has been shorted recently. Contrarians love the Fool's pick and then go counter to them, esp. after a run-up. However, the volume has not been that large so the magnitude of the shorting can't be anything like Amazon (unfortunately). I took some profit and then reentered on this pullback with a smaller position. I do think there is upside potential on this upcoming earnings conference. Also, I think there is real potential for 3dfx to make inroads into the traditional home game machine as price points continue to drop on the general PC architecture. We now have HP computers (w/o monitors) retailing for $800 with Pentium MMX chips. I have no doubt that there will be some cheap specialized game machines within the next year that will use clone x86 CPUs (real cheap), just enough RAM, a specialized graphics processor (Banshee) that outputs to a TV, a CD-ROM for loading game, and some input devices. It could run all the games for PCs yet cost well below $500. -Bill

To: robnhood who wrote (1264)	1/14/1998 6:36:00 PM
From: Piranha	Read Replies (2) \| Respond to of 16960

<< is it not possible there was a fair short position building over the last few days ,,put out a little negative comment and whamo,, reload >> Not quite sure I follow what you're getting at here. Are you suggesting that UBS has been shorting, then covering after today's price drop? On the subject of shorting, I don't doubt for a second that shorting has increased over the past 1-1/2 weeks since TMF recommended TDFX. However, consider that most of the still-uncovered shorts are likely out of the money. Even with today's small drop, the lowest the price went today is still higher than all but about six hours of trading time. Total. And the volume during that six hours wasn't all that heavy. As of today's close, only shorts sold between yesterday and today at about noon are in the money. Please clarify if I misunderstood the point you were trying to make. Thanks! Piranha