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

To: joel3 who wrote (7434)	9/19/1998 9:52:00 PM
From: Joe C.	Read Replies (1) \| Respond to of 16960

Fahnstestock reiterated their Buy recommendation with a price target of 28 in twelve months and lowered estimates. One interesting observation in the report is that they believe that while TFDX has been tracking a sample of board sales from a select set of retailers, it has not been receiving specific information from its board-level customers. They expect management to begin getting inventory data from DIMD and CREAF (about 1/2 their sales) to avoid such problems in the future. While tracking retail IS a better indicator I'm suprised they weren't getting board maker inventories. Even though no one has stated this, I supsect that DIMD has bent over backwards to make sure their inventory numbers will be low this quarter after the hit they took last quarter for having too much inventory on hand. Lot's of posters have talked about out of stock conditions. I'm speculating that TDFX saw this as a sign of good sell through but the board makers chose to postpone re-orders to avoid any potential problems at quarter end. Having two product lines will certainly go a long way to flatten out these kinds of feast or famine type scenarios. Joe C.