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

To: Burlitis who wrote (4141)	6/17/1998 7:27:00 PM
From: Don Westermeyer	Respond to of 16960

Alex, My confidence in TDFX (the stock) is slowly coming back. - Things seem to be ok at the company. (My biggest fear was they oversold chips last Q and will miss earnings now). - The stock has a P/E of about 10. - The PEG ratio is near or under 1 - very low for a tech company. IMO - People are too worried about the low margins in the OEM graphics market. If TDFX could grab just 10% of the OEM market, they should make a killing even with significantly reducing the profit margin. I'm not sure about the $40 target, but it seems to me they deserve a P/E of 15 seems reasonable (for a 1998 target of $27). FWIW - when I hold large shares of stock I will write call options on it. Actually I'm not super bullish on the stock market either and have been 50% cash/bonds for quite a while. I keep my retirement money far away from my trigger finger! At least the stock isn't trading at book value like TDDDF and SIII.