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

To: Piranha who wrote (2148)	4/16/1998 6:06:00 PM
From: Piranha	Read Replies (2) \| Respond to of 16960

For those who still care about such things: Lenny Brecken of CIBC Oppenheimer issued a report that appeared on First Call this morning. In it, he states that he expects strong 1Q98 earnings, but also expect the earnings to slip in 2H98. This is probably responsible for the dip to 28 that occurred early in the day. I'm actually kind of glad it did, as it allowed me to buy back (at over a point less) the shares I sold yesterday :) The dip didn't concern me too much as I saw that there was actually relatively little volume at the lower prices. Brecken cites his reasons for being bearish on TDFX's 2H98 performance as his expectation that Banshee volume shipments might slip from 3Q to 4Q, and other Banshee delay concerns, as well as the fact that 3Dfx's major sales are still 3D-only cards rather than 2D/3D solutions. Frankly, I'm a little leery of Brecken's opinions. After all, CIBC Opco has maintained either a "BUY" or "STRONG BUY" recommendation on 3DLabs (TDDDF) even through its demise from the high 40's (closed at 17-3/4 today). I think he may have to revise estimates yet again tomorrow. I'll even wager that his below-consesus estimate of 0.20 for 4Q98 will be above the current (unrevised) consensus of 0.27. I'd have to say the guy is a little too hung-up on sales to OEMs as 2D/3D solutions to the point of totally ignoring the revenues being generated by the 3D-only solutions. Either that or CIBC Opco underwrote TDDDF's IPO and wasn't involved in TDFX's (d'ya think? :) ) Piranha