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

To: Michael G. Potter who wrote (8470)	10/19/1998 6:41:00 PM
From: Sun Tzu	Read Replies (3) \| Respond to of 16960

Michael thanks for pointing out this excellent information. Here is some points I'd like to make. CL paid as high as 12 7/8 for TDFX. I'm taking this to mean they expect fair value of ~20. It would be natural for 3Dfx to give prefrential treatment as CL is investing in 3Dfx and STBI and DIMD are investing in nVidia. They cannot take this prefrential treatment too far as (I think) it is illegal. In my talks with 3Dfx the subject of stock price has repeatedly come up and 3Dfx has repeatedly indicated that they expect their share price to eventually go above $40~$50 range. Many of their staff feel the same way and unless the employee options are substantially repriced, I don't think $20 is good enough. I don't like the management at CREAF and I really don't like to see them in charge of TDFX. Should that happen, I will sell out right away. Besides a higher price for TDFX, what else does CL bring to the table? FWIW, I think 3Dfx has got what it takes to dominate their market and stands a very good chance of reaching share price of ~40 in 18~30 months, at which point in time they may be bought out at a premium to that. The only company with which I would support a merger is ATI. They will bring to the table a lot of OEM relationships as well as valuable experience in inventory management and marketing (both to retail and OEM) along with production know-how. 3Dfx will in turn provide them with technology boost and the "new blood" vigor that ATI needs. The "sum" will be much greater than its "pieces". I don't think that I can say this about any other company. Just my opinion, Sun Tzu