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

To: Michael G. Potter who wrote (9640)	12/14/1998 9:35:00 PM
From: Greg Keeler	Respond to of 16960

It's nice to see that Creative went down more points today than TDFX, but I'm worried about two things: a merger between creaf and nvidia would produce quite an impressive company ,and (2) the loss of a lot of advertising will be bad for tdfx ( their logo won't appear on all the other board makers' boxes anymore). I have to say that there is potential in this merger. Stbi's balance sheet isn't bad, and they make some interesting products. But if all the boardmakers are hostile to TDFX (and they will be), then things could go badly if all of TDFX's plans don't work out beautifully. And they won't; mergers just don't pan out that well.At best, there will be all the "unexpected charges..." etc. I imagine the ordering screw ups with DIMD last quarter has something to do with this move; and who know, there may have been more ordering problems from board makers this quarter--so TDFX thought "Enough is enough!"

To: Michael G. Potter who wrote (9640)	12/14/1998 10:01:00 PM
From: Patrick Grinsell	Read Replies (2) \| Respond to of 16960

You can't use their revenue and net income numbers, as they'll be replaced by 3Dfx only chipsets. ...duh... I'm trying to figure out a model that takes 3Dfx sales from other customers (Diamond and Creative, and the others) and adds them into a STB only model. Mike, try using current GM and apply it to a sample V3 selling price and volume. That's what I've done. Remember selling price might be higher due to sole source monopoly. Since both co.'s will run independently for the most part I see very little SG&A savings. Can't wait to see what you come up with. Let's compare. Pat