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

To: Chip Anderson who wrote (5125)	7/8/1998 12:24:00 AM
From: Jay Fisk	Respond to of 16960

Copy of a MF board post by Aquarian - Well said. What about selling themselves to institutional investors? TDFX is perceived as a small, fabless, recent offering in a notoriously volatile, cyclical, commodity sector. They simply do not have a long enough track record of success to justify the perceived risk for the big time investors to bite. Just screaming their own praises at a fever pitch won't do anything. That's what the competition does, and it isn't helping them. TDFX is attempting to build a position of strength so they don't have to rely on hype and trickery, thus distinguishing themselves from the mob. They are attempting to redefine themselves in a novel way as an entertainment company. That is not a familiar concept to chip sector analysts, and they will take some convincing with objective evidence (like a continued run of cold hard profits and unprecedented market dominance). They may ultimately fail, but so far, so good. The point is, they aren't there yet, but they are getting closer. I think they are withholding their real thunder until they have a rock solid case. There will be no hype, just facts. Not "We will dominate", but "We are dominant". It takes some guts to play it that way, but every move they have made suggests this strategy, and it is pretty much stated in every recent comment by the leadership. I don't think there is any question about them having a coherent PR strategy. I see it clearly. The question is whether investors share the vision (a major question it would seem), and whether we will keep the faith long enough to see a payback. Look, I am getting pounded here same as everybody else, and if I thought these guys were headed into oblivion, I'd take my lumps and move on. Part of my personal investing philosophy is sticking with companies who behave in ways that I understand and approve of. I think these guys have it right in every respect, and I will stay long until that changes. You may disagree and that's fine, but I have to object when anybody suggests they don't have a plan or that management isn't doing their job. They have held a remarkably true course, and will succeed or fail because of it. I don't think they will change course because of short term market action, and that's one of the things that makes them so cool. If I make or lose money on TDFX it is with my eyes wide open. ---------------------------------- As long as the brass at TDFX execute on their business plan, I won't sell - at any lowball price - keep buying, and buying, and buying !