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

To: Sun Tzu who wrote (5837)	7/28/1998 1:15:00 PM
From: jttmab	Respond to of 16960

Re: "PS it is a real pain to make table here as the tabs seem to disappear. Does anyone know how I can do a tabulated post?" When you're creating a post, there is a box for "Use Fixed Font", check the box and your alignment will be maintained. Best Regards, Jim

To: Sun Tzu who wrote (5837)	7/28/1998 3:03:00 PM
From: Greg S.	Read Replies (1) \| Respond to of 16960

Fahnestock, Buckingham, Nat.B Mont., B.A Rob. ... It's encouraging to see those relatively strong recommendations from the analysts - but note the firms they represent, and what firms are not on the list. Where are the Morgan Stanley Dean Witters and the J.P. Morgans? I think this is a reasonable illustration that a lack of strong institutional backing is, at a very basic level, quite possibly what is preventing this stock from being up. Maybe we've suspected this for awhile but I think the evidence is getting clearer. It goes a long way to explain why the stock isn't at a high multiple. As for the reasons even further behind this weakness? Well, that's what we've been debating all along. But I think we can at least see we are on the right track. -G

To: Sun Tzu who wrote (5837)	7/28/1998 3:31:00 PM
From: jgideon	Respond to of 16960

NVID is not NVidia. They have yet to IPO, though I believe that they have filed - somebody correct me. jg

To: Sun Tzu who wrote (5837)	7/28/1998 4:09:00 PM
From: Patrick Grinsell	Read Replies (1) \| Respond to of 16960

Direct Sales Sun Tzu: <<I think 3Dfx is trying to do the direct sales but not for V2 or Banshee, rather for Rampage. The problem for doing it for V2 or Banshee (i.e the ATI model) is that it will make 3Dfx a competitor of its clients (i.e DIMD and CREAF).>> I think you may have something here. The problem with going through a board maker is that there is another markup. Diamond was saying that Voodoo2 was their high margin product and it represented half of their sales. Eyeballing their numbers, I would guess that margins on Monster 3D II would allow Diamond to make about $80-$100 per board. This is in comparison to the $20 or so that 3dfx makes on the chipset. Had 3dfx been making their own boards the company would have more cash than its market cap. The problem is that 3dfx still needs the distribution channels for the retail sales. Oh, did I mention 3dfx should have enough cash at the end of the quarter to buy STB (108M)? STB has excellent channel and OEM penetration BTW. **************************** On another note, a thought just came to mind. 3dfx said that the higher advertising money wouldn't be something to be concerned over. Could they be getting close to a settlement with their lawsuit? Chip, I think you mentioned before that the suit was for 100M. Is that right? Pat