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

To: Jeff Lins who wrote (9652)	12/15/1998 1:54:00 AM
From: micren@aol.com	Read Replies (1) \| Respond to of 16960

Jeff, STB's crappy earnings this quarter are due to a number of things, one being a whole bunch of bad STB N-Vidia boards Gateway returned, a cancelled Gateway OEM (not the TNT though), delays in getting the TNT boards out last quarter, etc.. Everyone knew that earnings would be negative for Q4 and that it would be a one time thing, since STB later announced record TNT sales as well a whole boatload of OEM's. The Q1 '99 report would have been positive. STB was selling below book and a price over 10 was anticipated for next year. A poster in Yahoo STB message boards suggested the earnings Q4 could have been purposefully low so as to make it more attractive to the buyer. After all, there are all sorts of creative ways companies write off losses, and had there not been a merger announcement, the Q4 report could have very well been around the whispered -.02 rather than the -.45 they released. I found this to be an interesting possibility. Now what I'm curious is what's going to happen the next three months. STB would have had good earnings Q1, and TDFX probably will also with their high Banshee sales. So now STB will go for .65 of TDFX in March. Except today STB closed at 7 3/16 to TDFX's 12 15/16. That's not .65 Is it because the news hasn't been fully absorbed yet, or are people anticipating TDFX will fall further in price. TDFX is getting STB cheap. For those who bought STB at, lets say, $15 last year, TDFX would have to hit $23 for them to break even. And STB reached a high of $26 last year. Which brings up another interesting possibility. It's in TDFX's best interest right now to keep its stock price from rising to high before March rolls around. So what will TDFX's next quarterly earnings report look like? Hmmmm?