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

To: Simon Cardinale who wrote (8280)	10/15/1998 8:18:00 PM
From: Sun Tzu	Respond to of 16960

Just finished listening to the 52.5 minute CC. Simon has done a good job of summerising the CC, so I'll just highlight a few points. TDFX looks good. I hope we get a very big drop tomorrow so I'll buy more. The basic theme for the past quarter was that (a) $4.5 mill write down of the inventory. And (b) Diamond screwed them by buying only 10% of the orders they had promised. To prevent this in the future, they have hired a market research firm to monitor the retail sales for them and are working on closer ties with their customers. Now the important part: They expect next Q to be a blow out. Early signs are that the sales of V2 is quadrupling due to the lower prices, though this is should moderate as the quarter progresses. Packard Bell is going to actually put 3Dfx logo on their boxes (similar to the Intel Inside logo). I like this part very much. I also like their partnership with ERTS which I think is a lot more important than people give it credit. They have reduced the number of their competitors from 30 something to 3 (i.e ATI, SIII, and nVid). Personally I don't think 2 out of those 3 will be around 2 years from now. So this is good news. They also believe that nVid is hyping their OEM relationships and that those relationships are not as strong as people think. 3Dfx however is working on selling the entire Banshee family of cards to OEMs and not just this one. They also have been pointing out to OEMs that nVid's lack of credibility has means they are unreliable to count on for any extended family of future products. They expect to have a lot more OEMs in 99 than in 98. Glide is important as it means 3Dfx will not have to wait for Microshaft to add the features for the new products into DirectX. Sun Tzu P.S. More analysts than last time as well as more intelligence than last time (though still a couple of dumb ones). P.P.S. I'm surprised that the nVidia law suit did not surface.

To: Simon Cardinale who wrote (8280)	10/15/1998 8:21:00 PM
From: Paul A	Read Replies (1) \| Respond to of 16960

Damnit! I just spent over 1/2 hour listening to that call and could have just read your message! Im back.. I bought some before the close today expecting exactly what I got in this report. Nothing new here, and the focus is on moving forward. This report is irrelevant and its now in the hands of perception. Is the 3d market going to pan out? growing pains for all the companies involved? is TDFX the best suited for capturing this segment? Anyhow.. I trade stocks and very rarely hold positions any longer. I have been here since day 1 and have waited to start a position again after bailing when we dropped into the mid teens. I traded but never held a position when we dipped just shortly after the earnings warning. welp folks- im back, and although I wish the last 2 quarters (yes 2 quarters) didnt happen, im satisfied in betting that this is simply growing pains. TDFX has the cash, has a new cycle, and a name. This will get real interesting over the next months as once again, investors and traders will be forced to speculate just how big this sector will grow. Revenue is key here and the conference call gave a sense of 4q being pretty serious. anyhow.. good luck folks! this report is not negative, just a null one... although the .20 was unexpected and given the forward looking statements it will only help us pay for the top advertising, top techs, and a nice bank account on top of it! TDFX is in position, now lets see if the potential is there

To: Simon Cardinale who wrote (8280)	10/15/1998 8:57:00 PM
From: Michael Linov	Respond to of 16960

Thanks for the notes, Simon, and everyone else... I've been writing this summary, but I see that some already posted most of the points :) some of my notes... 3dfx logos on PB V2 12MB 149-199 retail Renewed strategic relationship with EA NFS3 / Madden 99 TV Adds feature 3dfx Extensive promotion at Babbages at EB including Video loop. Q4 will be good quarter, but also higher spending for 1999... big show High % revenue on R&D, multiple design teams Late 1st quarter/early 2nd quarter for Banshee 2 (OEM, AGP 2x) Ad budget for 4th quarter (large for graphics industry, efficient use of dollars, ad budget reduced), branding Some interesting comments about Set-tops, but nothing specific, and unfortunately ,no follow ups. V2 sales dropped in Q3 because of loss of momentum due to high prices... (same as happened with V1) (Only early adopters), But V1 took off again when prices dropped, expect surge in sales for V2 , plus SLI upgrade. Thanks for everyone's input :)