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

To: Frank Sheridan who wrote (4671)	6/24/1998 2:33:00 PM
From: Daniel P. Dwyer	Read Replies (1) \| Respond to of 16960

Perhaps, you spoke too soon? Tdfx is making a nice comeback. I am not sure why this stock is going down, when it shot up to $35 just a few weeks ago. Perhaps, it is the extreme volatility that has visited this stock that makes a lot people want to run for the hills. Prospective buyers have to be nervous buying a stock like this. So what will change this. Earnings that will come in a couple of pennies better than consensus, and an oem deal or two for banshee. This is another case of a great small company but a lousy and volatile stock. What did we buy? The company or the stock. It is great if you can buy both, but oftentimes an investor winds up buying one or the other. If you buy the company, it is because you believe the company has great stuff and will be around for a while. If you bought the stock, chances are you already sold it. A person who buys a stock buys it because it is going up; and sells it because it is going down. Not bad advice in general, and certainly apropos up to now. But a person who buys the company, usually will see these heart in mouth dips as an opportunity to accumulate. If it can stay above $17.00 today, then it may be time to buy the stock too. Dan Dwyer

To: Frank Sheridan who wrote (4671)	6/24/1998 2:35:00 PM
From: Andrew Fenic	Respond to of 16960

Let me play Devil's Advocate for a moment since we are all in such a pessimistic mood. I am still extremely bullish about 3DFX but I do realize the company faces some challenges: 1. Many companies have announced chipsets with performance close to or better than Voodoo2. Where once a 12 month technology lead existed, competitors have now shrunk it to a few months and may even take the lead as they have more resources to sink into R&D. 2. Banshee has little to differentiate it from competitors. Someone posted the Dell's and Compaq's of the world may just pick the lowest price chip to bundle with their PC's. Right now that would be the I740. 3. DirectX/Direct3D is becoming the predominant gaming API. Next year few companies will write to Glide and OpenGL. Hence, 3DFX is likely to lose its compatibility advantages. They will need to fight 1999 based on performance, display quality, and PRICE. 4. Performance has increased so far so fast that software developers are falling behind. Not even Unreal, the latest and hottest game, slows down a P2 with a Voodoo2 class accelerator. What incentive is there for gamers to buy V3?