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

To: Chip Anderson who wrote (2547)	4/24/1998 11:25:00 AM
From: davep	Read Replies (1) \| Respond to of 16960

the selling wave is over as todays low vol indicates and volatility decrease.Now tdfx will start trading a range.Yesterdays pop at the close was total mm manipulation-1.75 pt gain on 60k in 8 min with no gap up at todays open...fake-out

To: Chip Anderson who wrote (2547)	4/24/1998 11:35:00 AM
From: Eric Hautemont	Respond to of 16960

It really depends on a number of things. Different VCs have different strategies. Some distribute back to their LPs as soon as the stock is not restricted from trading, under the school of thought that "it's not our job to decide whether to hold or sell public companies stock" or "I don't want to play the market"; others do not distribute for a while for a variety of reasons (feeling the stock is not liquid enough or does not have enough float to support current share price is one reason, thinking that holding the stock is going to increase returns to LPs is another); and some distribute in cash. Consequently it is impossible to predict what happens. In this case, Norwest Capital might operate differently from Venrock who might operate differently yet from Tech Farm etc... However, one thing is sure: Successful VC firms have historically have exceptionally high returns, way above the market, even when the market is hot like the last few years. So for them to hold to publicly traded stock for longer than they need to is a risky proposition. Say you had 70% net return/year on your fund, would you take the risk of keeping a freely tradable stock? Even if the stock climbs 50% over the next year, this is going to hurt your annualized rate of return. Tough life as you can see :-). Eric