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

To: Paul A who wrote (7525)	9/22/1998 5:10:00 PM
From: Simon Cardinale	Respond to of 16960

Paul A: Was the selloff for good reasons? 'next quarter will be at or slightly above break even from last. Nothing has changed since the shareholders meeting and we dont know why the stock is selling off'. Strange, SOMEONE always knows! I'm not sure that the selloff was about 3Q shortfalls. Certainly there was one analyst voicing concern over Diamond's inventory buildup, but the selloff started long before that. You don't have to look at a graph of the Russell 2000 index for very long to see that most small caps were taking a beating. Does "someone" know something about all small caps that they don't know about large caps? I doubt it. Hindsight is not 20/20. It's tempting in retrospect to draw cause and effect relationships where they don't really exist. I think that 3Q was severely backloaded, and 3Dfx management thought that Xmas sales would start in by the end. Meanwhile DIMD and others tried to trim back their inventory. 3Dfx is selling at a high enough margin that it doesn't take many chipsets to move them from red to black. Simon