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

To: Sun Tzu who wrote (8304)	10/15/1998 10:26:00 PM
From: jttmab	Read Replies (2) \| Respond to of 16960

Well, after the conference call we certainly all know which way this stock is headed tomorrow.... Best Regards, Jim

To: Sun Tzu who wrote (8304)	10/15/1998 11:03:00 PM
From: Joe C.	Read Replies (1) \| Respond to of 16960

TDFX can now use those V2 write down chips as a cushion against an unexpected demand. If as they say, they're comfortable with inventory till next quarter, a strong sell through of V2 chips might mean that they could cover the end of the product cycle with considerably lowers costs by ordering the third chip. Sort of like what we saw with V1, when V2's go for under a 100, there will still be people buying the chip. If Christmas is strong, they should have sufficient time to order the third chip for Feb/March time frame to cover the discount give away period. I think that while a lot of people may buy a new computer this holoiday season, a lot more may just upgrade their 3D given the way the economy is going. V2's are becoming a very inexpensive upgrade option. I for one will be going SLI this Christmas :) Joe C.

To: Sun Tzu who wrote (8304)	10/16/1998 1:40:00 AM
From: Jeff Lins	Respond to of 16960

Sun, you said "The inventory write down was for about 450,000 units, which I can't see a reason why it cannot be sold within the next two quarters (or even just Q4)." You are correct, they could (and better!) sell these units over next couple of quarters. But then they have to worry about the other million chips...it appears that they don't think that they will sell all of their "normal" inventory...so they won't go to the expense of ordering more TMUs until they think that they will deplete current inventory... Question: why couldn't they just sell the chips at cost? why couldn't some Taiwanese company wack out a V1.5 card with little advertising or fanfare... Hell, if running a batch of TMUs would cost out at $7 per unit (guess...), then if they could sell the whole setup at anything over 7 they would make money...SO....MARK MY WORDS!!! THEY WILL END UP SELLING THESE CHIPS...if they don't there will be only one explanation: they are not as ready to go as they have implied. Did anyone ask about stock buyback? Making their own cards? Set top boxes? Q4 earnings? Nope....BARS had a "first timer" on the CC... some lady wanted to know if developers needed to rewrite code for DX6...I hope she doesn't tell Elias to lower the rating based on the "Yes" answer...Imagine the huge impact this kind of insightful questioning could have had on MSFT: "Will developers need to use new code when writing to windows instead of DOS?" Here is a question, Lady...WHO CARES? WHY DOES THIS MATTER?