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

To: Karin who wrote (4587)	6/23/1998 1:41:00 AM
From: Obewon	Read Replies (1) \| Respond to of 16960

Anybody that wants the company bought at these low prices should have their head examined. Absolutely nothing has changed but expectations and they can change again at any time (witness the drop we've just experienced). Management continues to deliver on its plan taking into account the market environment. The stock price will take care of itself eventually. I want sales and good margins (ie earnings) just now. When I first heard that Banshee was going to sell for $38/unit at volume, I thought that maybe management had just shot themselves in the foot by demanding too much. Once I looked at it though I realized that Banshee is aimed not directly at the OEM market (for whom price is absolutely critical) but once again at the card makers (Creative & Diamond) who sell to the OEM market. Though it is possible to integrate Banshee onto the motherboard now, 3Dfx is targeting higher margins while production volumes are constrained. Once production hicups have been passed and the chips can be mass produced (probably January so as not to interfere with Christmas card sales), prices will fall to about $25-28/unit as gross margins increase. About that time motherboards with integrated Banshee chips will start to appear. My opinion only of course. OB