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

To: Patrick Grinsell who wrote (8443)	10/18/1998 10:00:00 PM
From: Joe C.	Respond to of 16960

Getting into the board business is a great idea for next year. With the current price of the stock, there would be too much dilution on our part to make it worthwhile. I'd rather see them build up their market value so that an acquisition would be attractive to us. All the boardmakers are in real trouble. Too much of a commodity business dependent on someone else's chips to sell their product. The advantage of an acquisition is buying their distribution channel. I believe most of these guys don't actually assemble their products but rather outsource. DIMD has good branding but so does TDFX. I don't think buying their distribution channels justify the price. Using cash would be a huge mistake - I sell out on the news. Joe C.