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

To: UCLAlumnus who wrote (8496)	10/20/1998 2:04:00 PM
From: Sun Tzu	Read Replies (2) \| Respond to of 16960

How are we down in this rally? Easy, the stock is being manipulated. This is the first time you've heard me say such a thing because as a general rule I don't beleive in stock manipulations. However, for most of the morning the volume was unusually low and the price flat to slightly down. After the short side made sure that there was no excess buying pressure, the started to trumpet the doom and gloom scenario on various boards to encourage people to sell off their shares. This is more of a psychological warfare than anything else. Notice how none of the doom sayers had the guts to say a word last night, because they were not sure they could control the situation today. Ask yourself, what is the purppose of those hyped up braggings? What else is the poster trying to achieve but a negative psychological impact. Unfortunately most TDFX shareholders are too inexperienced and are easy prey for such people. Let's take a look at some of their FUDs: (1) the CL investment is a negative becausse it ruins future chances of TDFX. What a load of BS. No one spends $10,000,000 just to be a party pooper. Once you invest in the company at such a level, you do your best to see that company succeed or you lose your dough. They conviniently forget to remember that (a) a 6% interest or even a 20% interest is not enough automatically get you a seat on the board. (b) a seat on the board gives you only one vote on the board and last I checked, unless you are in Iraq, one vote cannot dictate the future direction of the company. And (c) 3Dfx is by far in a better position than its competitors and is in the best position in its history. (2) That the short interest is insignificant and chances of a squeeze are nill. Really!? Then why did they not have the guts to say so last night? There are about 15.6 Mil shares outstanding of which 7.6 is owned by insiders, 27% by insititutions, and 1 Mil. by CL. So the total float in retail hands is only 2.8 Million shares. So just how little is shorted? At the last count there was 2.3 Mil. short interest. That is more than 80% of the retail holdings! Even if you think the short interest has narrowed by about a million shares, that is still 50% of the retail interest. It's a pitty that the retail holders are so unorgonized and ignorant that they cannot take advantage of this golden oportunity. (3) Notice how they are manipulating my statements. They are doing the time honored method of misquoting me similar enough to confuse the public and then attacking the statement that was never made. Here is a sample of such slimey deceptions: False: If TDFX goes down even when the market rallies, how much will it fall when the drops! Truth: We have already seen days of heavy losses in the market and TDFX held up just fine. False: [using a language often used on him by his parents] followed by, it is stupid to say that the stock will jump to 20 because CL bought 6.5% equity. Truth: I said that since CL paid as high as $13 for a large chunk of TDFX, then it is not unresonable to assume CL thinks the fair value for TDFX is $20. False: Sun Tzu is a conrary indicator and if you follow him you lose money. Truth: I could not have cared less if anyone follows me or not, since it has no benefits for me. But to set the record straight, I have been advocating sale of TDFX as early as July and have repeatedly said that unless the stock stabilizes, you should not buy it. As for myonw trades, I jumped in only two or three weeks ago and my average cost is 11, but since I've sold near term 12.5 calls at the same time, my real cost is 10. So far I have no regrets. False: I predicted a short squeeze. Truth: I said that given the high ratio of short interest to retail holdings, it would not take much to trigger a short squeeze. Obviously if people do not call their shares in, then there will be no squeeze. I could go on and on, but you get the point. If you have time to kill, read the posts from "gobsofwarts" [what a fitting name] and if you feel dispair and want to sell your shares, then realize that this was his plan from the begining. How else can he make his money. None of the shorts had the guts to even breath last night, let alone say a word, then suddenly at 10:46 when TDFX is down only 1/8 on unusually light volume and it becomes obvious that there will be no big buyers today, you see test like this: This dog is down by an 1/8 on such a strong day!!!! Hahahahahaha! This is just great! how does it feel? Oh, how bad, this is too funny! All the screaming and shouting about a short squeeze!! I say, this is a real dog. A real dog. How can you believe this stock will go up? Creaf made an investment? A bad investment! There - argument resolved! This is too funny! It is sad that some people actually fall for such blatant scam. Just how much effort does it take to lower the price by 1/8 on volume of 70,000? Such is life, I guess. I made a rule long time ago not to dignify moronic statements or people by answering them, but I though some of you should see the truth. Sun Tzu