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

To: Harold Engstrom who wrote (5270)	7/13/1998 1:10:00 PM
From: Hal Rubel	Respond to of 16960

TDFX Evaluation by Analysts RE: "Personally, I think we give too much credit to analysts. I really doubt that any analyst has thought out what will affect 3DFX in any logical or intelligent way. We can find good reasons for the company's stock to behave one way or another, and I doubt these reasons have any bearing on the trading whatsoever." as posted by Harold Engstrom. Analysts in the case of TDFX have valued the company on economic terms only. Technology considerations are not factored in the way we on this board have done. If we were an upstart company in the Potato Chip business (where there are no critical technological considerations) we might be priced right anywhere between $15- $22. But, Potato Chips? Hal PS: If we do have a book value of as much as $12, then the $6 difference between book value and a share price of $18, represents a speculative over valuation of only 2 times forward earnings of $2.80 (0.50, 0.80, 0.50, 1.00). With the news running so heavily and consistently in our favor, this stock is explosively dangerous to shorts. Are there any shorts out there? I'm in a very receptive mood today to hear your best arguments. I could use a dash of cold water to keep me realistic. Hello out there ....? Yoo-hoo, short guys ...?! HR