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

To: Jeff Lins who wrote (8544)	10/22/1998 1:30:00 AM
From: Simon Cardinale	Respond to of 16960

CREAF and TDFX Creative bought TDFX so when they sell Banshee they make money twice. Once for their own sale and once for TDFX's. There are few shareholders that can influence the profitability of their investment to the extent that Creative can. They're putting themselves firmly in 3Dfx's court, and that's great. Now what happens if they invested in nVidia as well? DIMD and STBI had to do it for some reason... Could this be their peace offering? I think Creative is positioning themselves not to take over 3Dfx, but to prevent anyone else from buying 3Dfx and locking them out. I imagine their scared to death of vertical integration, too. All their Voodoo branding could be subverted instantaneously. Simon

To: Jeff Lins who wrote (8544)	10/22/1998 1:54:00 AM
From: Dennis G.	Read Replies (1) \| Respond to of 16960

Thanks Jeff, I understand. My point was that potentially CREAF and TDFX could mutually support each others price with a cross-investment. The irony right now is that CREAF is free to buy all the TDFX it wants but can't buy it's own stock. And TDFX can buy all the CREAF it wants, subject of course to cash limitations. Perhaps CREAF made TDFX such an offer. Who knows? It would be a way around their present restriction, which is due to be partially lifted soon. I actually believe both companies could gain by such an arrangement. Both are seriously undervalued and in institutional disfavor. And both companies futures are strongly linked regardless. Dennis