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

To: Chip Anderson who wrote (3706)	6/4/1998 12:47:00 AM
From: Mike Sesan	Respond to of 16960

Chip, I felt it was positive also. 1)Consolidation in the industry where I see 3dfx as being a big player 2)Retail leadership and OEM opportunities late 1998 3)His evasiveness has always been 3dfx's strength. The more quiet they are the better things turn out. I believe this is displaying their confidence. This does not make us as stockholders feel good for the short term but the long term should be bright. Any thought's.

To: Chip Anderson who wrote (3706)	6/4/1998 1:09:00 AM
From: Mike Sesan	Read Replies (2) \| Respond to of 16960

Pulled off Yahoo board: DLJ News: Something Else Good! "3Dfx management provided an overview of the company's business strategy: to provide the highest performance 3-D graphics entertainment solutions through leading 3-D graphics processor technology, proprietary API support, and broad applications-software developer relationships. The company reaffirmed continued strong demand for its Voodoo 2 product, which is the highest performance accelerator in the market. 3Dfx's first single-chip integrated 2-D/3-D solution, Banshee, was confirmed to be sampling extensively to OEMs. Banshee has shown industry-leading 2-D and 3-D performance in early benchmark testing. The company expects the chip to be available in the retail and system integrator channels in the July/August time frame. At the recent E3 electronic gaming conference, 3Dfx had 160 game titles running in its booth. We expect 400 game titles to be optimized for Voodoo Graphics by Christmas 1998. We are comfortable with our EPS estimates of $1.97 for 1998 and $2.37 for 1999 (EPS estimates for fully taxed operating earnings). We reiterate our BUY rating on the stock."

To: Chip Anderson who wrote (3706)	6/4/1998 1:22:00 AM
From: larry oertel	Read Replies (1) \| Respond to of 16960

VDO shareholders feel your pain I dug this up somewhere in cyberspace. Looks almost like a mirror of 3DFX's woes. Is it the TNT chip? Maybe it's the typical summertime tech blues, or just maybe investors are starting to believe that 3D will be a brutally competitive brawl with no clear future winners. >Source: ukshares.com 3 June 1998 The past three days have brought howls of anguish from smaller VideoLogic holders, who have watched in near disbelief as their paper profits have either wholly or partly de-materialised. Certainly there has been no rush to sell by the faithful. Sentiment remains as strong as ever, and indeed recent days have brought many new converts. Current events indicate that earlier estimates of royalties may have erred on the conservative side. Moreover broker recommendations suggesting then as a buy at up to 150p remin firmly in place. There is equally no doubt that a fair number of would be investors may have been panicked by the sharp falls into selling, and an element of profit taking after a good run was also inevitable. Reaction to Sega's new machine has been highly favourable, and projected sales of chips for this alone should underpin VideoLogic's medium term profitability. This is something Sega can not afford to get wrong. That companies very survival depends on Dreamcast. On the other hand VideoLogic has three other strings to its bow, at least two of which could more than ensure that it could 'hack it' in the unlikely event of the Dreamcast flop. But a flop is something Sega is now prepared to countenance this time around. It believes it has identified allt he factors which led to its current generation Saturn machine being sidelined. And, Dreamcast will be priced to move. Industry soucres indicate an initial end-user price of between œ140 and œ199 - well below the original price of the Saturn (œ399) and PlayStation (œ299) back in 1995. 200 developers around the world have been provided with Dreamcast toolkits, and 15 software titles are projected for the earlier Japanese launch. This should build to at least 30 titles in the œ35-45 range for the European launch. The other 'technology partners' are Hitachii for the 200Mhz SH4 CPU, Yamaha for the Real Time Audio Chip, and last but not least Microsoft, who will be supplying a customised and optimised version of Windows CE. The PC chip will be launched 'later this summer', and although VideoLogic say they will be happy with 10% of what is a huge market, it is a certainty that NEC won't be entirely happy with less than two or three times that. If all this was not enough there exists a prospect of integration of PVRSG technology into the Set Top Boxes, a potential 'one in every home' situation. The mere sniff of the size of this market was recently enough to set Pace's very depressed shares alight again. This even though Pace are unlikely to be a significant player on a Global basis and, with their European overheads, are almost sure to be eclipsed by Far Eastern manufacturers when the market is significant. Design royalties know no such limitations however, and as far as VideoLogic is concerned the reveneue stream from this could eventually eclipse all others. The company is playing this one very close to its chest and will only say 'there will be a lot of focus put in to a lot of the huge applications available'. If the situation is so promising why has the poor VideoLogic shareholder just seen a large chunk of his paper profits disappear? The answer is almost certainly not as sinister as a number of vocal people would have us believe. It simply appears to be that there have been a small number of six figure sales of the stock, and despite a rush of eager small buyers to get the stock 'on the cheap' the demand has not, for the moment at least, kept pace with the supply. The small investor often finds it hard to comprehend the logic behind such large programmed block trades. However when you have a significant portion of a company it is an entirely different ball game to being a small shareholder with foresight, and a little faith. There was clearly a pre-ordained strategy of wait for the E3 announcement and then sell into strength. Until this line of stock is full exhausted VideoLogic is not going to challenge the magic 100p. However in the circumstances it is unlikely that this 'buying opportunity' will go unnoticed by other larger players, and an institutional 'white knight' or even outright speculator will soon emerge to set the stock alight again. Market sentiment is at long last with this company, and unless something fundamentally changes patience is a virtue that will be well <