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

To: Chip Anderson who wrote (5702)	7/23/1998 11:09:00 PM
From: Joe C.	Respond to of 16960

chip, I would think these guys know the difference between OEM and cardmaker and would use the terms properly. Joe C.

To: Chip Anderson who wrote (5702)	7/24/1998 7:56:00 AM
From: Patrick Grinsell	Respond to of 16960

I think I'm going to cry... I'm not sure because of the warm welcome or the stock price :-) Took the opportunity to look at others in the industry. It would seems that 3dfx is not alone in getting abused. STB seems to have plenty of OEM's under their belt, and are very profitable with a PE of 8. The stock price is hovering just AT book value. All that and the company is expected to have better earnings growth than 3dfx. The stock price for STB has been just as abysmal as 3dfx. Right now STB is #2 in the OEM game. #1 is ATI, sporting a generous PE of 22. If by some incredible arm-twisting 3dfx manages to dethrone ATI then we can expect a stock price of $40-$50 using ATI as a baseline. As far as product goes, 3dfx has all the ingredients to actually make this happen. 3dfx products (banshee) provides excellent 2d and 3d performance at a good price and offers something that nobody else can, Glide. The fact that STB will have a Banshee product is encouraging. They can use existing channels and swap the RIVA ZX for the Banshee. ATI will be hard to dethrone. They have been selling overpriced graphical Swiss army knives for forever now. Their products aren't horrible, but something that doesn't have anything to do with price/performance is entering into the decision process here. I'm guessing it's feature set (TV out, AGP 2x, backscratcher...) or excellent sales people. Probably both. Because the decision process isn't necessarily "efficient" 3dfx will have to ensure that the marketing boys hold up their end. Thankfully, the rash of Voodoo2 oems shows me that nobody is lying down on the job and OEMs are listening to what 3dfx has to offer. Iomega got the door slammed in their face many times until the first OEM (Micron) came up to the plate for Zip. When the other boys started losing sales because of high customer demand everybody followed suit. I firmly believe that this is a similar type of product. Customers will vote with their dollars and the OEMs will turn. So I raise my glass to you all and thank you once again for the wonderful welcome. Here is to $45 next year. Pat