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

To: Paul A who wrote (4334)	6/18/1998 8:36:00 PM
From: Czechsinthemail	Respond to of 16960

6/18/98 3Dfx Interactive Rating Downgraded To 'Hold' By NationsBanc Montgomery NEW YORK -(Dow Jones)- NationsBanc Montgomery Securities Inc. on Thursdsay downgraded 3Dfx Interactive Inc., a maker of 3D media technology, to "hold" from "buy." The firm said it reduced its earnings estimates to $1.75 from $1.90 for 1998 and to $2 from $2.20 for 1999. Analyst Jonathan Joseph cut his 1998 fully taxed third-quarter earnings estimate to 41 cents a share from 48 cents a share, saying NationsBanc Montgomery is "increasingly concerned" about a sequential decline in revenue for the quarter because of lower order rates from Diamond Multimedia Systems Inc. (DIMD), 3Dfx's largest customer. Additionally, Joseph cited concern about Intel Corp.'s (INTC) "very aggressive pricing strategy" with its i740 3D graphics accelerator, which competes with 3Dfx's Banshee product. In response, 3Dfx said it expects continued strength in the market for its Voodoo2 graphics chipset, adding it doesn't think the market has been saturated. 3Dfx said the reduced Voodoo2 shipments by Diamond Multimedia are "in line" with its expectations, and it is "comfortable" with current inventory levels. Shares of 3Dfx (TDFX) fell $2, or 11%, to $16 on Nasdaq volume of 3.5 million shares. Average daily volume is 673,000.

To: Paul A who wrote (4334)	6/18/1998 8:59:00 PM
From: Pierre-X	Respond to of 16960

Re: Company response Thanks for posting your notes from your chat with the 3DFX rep. You said: ...no delays, no shortfalls, VERY upset how cheap the stock has become, great things to come in the future. One word: "stock repurchase" God bless, PX

To: Paul A who wrote (4334)	6/18/1998 9:08:00 PM
From: R Stevens	Respond to of 16960

Paul, Well put. I bought TDFX stock today. I'm a little nervous about how the Nasdaq will behave over the next few trading days, but I am very pleased with the company press release, and the upcoming official announcement of Banshee. I have seen other stocks get trashed by a downgrade but I've rarely seen a CEO get out and make a press release reconfirming the soundness of the company. A good sign of leadership. Technically there also seemed to be a strong support level just above 15 1/2. The stock bounced off it twice today. Several people have mentioned the woes of other multimedia companies recently. Here are some quotes from the press release Creative Labs made recently when they announced lowered earnings expectations. Note that although some of there products are not doing well, their Voodoo 2 product is singled out as doing very well. Creative Announces That Fourth Quarter Results Will Come In Below Expectations SINGAPORE, June 11 /PRNewswire/ -- Creative Technology Ltd. (Nasdaq: CREAF), today announced that its revenues and gross margins for its fourth quarter ending June 30, 1998, will fall short of analyst expectations... The primary factor underlying these changes is the recent collapse of prices in thelow-end and mid-range 2D/3D graphics market.Price pressure in the market for low-end and mid-level graphics cards had two effects on the Company during the fourth quarter. It reduced margins and sales for the Company's stand-alone, low and mid-range 2D/3D graphics offerings. It also significantly reduced sales and margins of the Company's system integrator bundles, which contained 2D/3D graphics cards along with other components. "The low-end and mid-range of the PC graphics industry has seen significant oversupply and tremendous price pressure in recent weeks, and Creative has not been immune from these conditions," said Sim Wong Hoo, chairman and chief executive officer of Creative Technology. "However, Creative has done very well with its high-end 3D Blaster Voodoo2 graphics products. The strong demand in this high-end market segment promises great things..." Thanks Again for the report on your calls to the company, good luck to all participants. RS