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

To: Chip Anderson who wrote (4935)	6/30/1998 5:56:00 PM
From: Miguel M. de la O	Respond to of 16960

Good point Chip. Tae is stripped of his award. In fairnes sto him, his posting is signed by Zladye. However, Tae could have made it clearly he was reposting this information.

To: Chip Anderson who wrote (4935)	6/30/1998 7:15:00 PM
From: Chip Anderson	Respond to of 16960

FWIW: I just updated the TDFX chart on coolhistory.com On the plus side: - We got a nice bounce today off of the support level at 16. - We had above average volume on a positive day. - The MACD indicator will _probably_ generate a mid-term BUY signal tomorrow. On the minus side: - The 200-day and 50-day moving averages crossed today, generating a long-term sell signal. - We are still inside the 16-18 trading range. No need to get over-excited until we break out above 18. - The OBV average is trending downwards and will probably do so for a while. Chip coolhistory.com

To: Chip Anderson who wrote (4935)	6/30/1998 7:19:00 PM
From: Chip Anderson	Read Replies (3) \| Respond to of 16960

From tonight's Motley Fool report: (http://www.fool.com/FoolPort/FoolPort.htm) =========== At times, little will test a Fool's patience more than a dog stock with a great underlying story. In this case, the mutt is 3Dfx (Nasdaq: TDFX). Watching this stock trade is something like reading a news column by Hemingway in The Toronto Star. You sense wasted potential. At least old Ernest knew to flee for higher ground when the time was right, but with 3Dfx, when will the time be right? The stock did receive respect today, bouncing up 10%, but that's hardly consolation. Why is 3Dfx trading so low in the first place? This stock's largest downfall might be the fact that it represents a semiconductor chip seller. If 3Dfx somehow convinced the market that it sold software, for example -- rather than technology on a chip -- the stock might be trading at a P/E of 50, rather than at 9 times this year's earnings estimate of $1.91 per share. The market is especially fickle when it comes to semiconductor investments. The mistaken hoopla of 1995 (i.e. semis will never trade at such low valuations again, this is the new age of an non-cyclical business!) stung investors when it proved incorrect. That past now makes everyone even more gun-shy when it comes to valuing chip-related stocks. So even if 3Dfx grows earnings 200% this year, the stock might continue to trade at 8 times 1999 estimates and the market might simply... well, shrug. Like the 100-year-old lady pitching that giant expensive diamond into the ocean at the end of The Titanic movie (you might have seen it) -- an uninterested shrug was all that she could muster. That's about all the interest that the market is mustering for 3Dfx, too, and until that changes, the valuation is unlikely to rocket. It's more likely to just stay afloat or even sink (though we're hoping we've hit bottom by now!). ========= Chip