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

To: Michael Linov who wrote (9681)	12/15/1998 12:32:00 PM
From: Greg Keeler	Respond to of 16960

Why would 3dfx want their stock to be low in March? It's not like there's any money changing hands. If 3dfx's stock is high in March, then the stbi people and stockholders will be happy. If we are giving .65 for each share, then the price of 3dfx stock is irrelevant, unless it goes so low that the merger is aborted. Am I right or do I have things all mixed up, as usual?

To: Michael Linov who wrote (9681)	12/15/1998 12:49:00 PM
From: Obewon	Read Replies (5) \| Respond to of 16960

Interesting timing for the announcement. Its the end of the quarter for 3Dfx so it has already shipped plenty of Banshee chips and feels confident in making its quarterly number EVEN IF Creative and Diamond halt all orders for the rest of the quarter ( which I expect they will do). Next quarter will be extremely poor IMHO as both 3Dfx and STB see product transition problems. 1Q99 will depend on outside factors such as continued demand of Banshee chips by Diamond/Creative/Others and Nvidia's decisions concerning continued supply of TNT chips to STB. It will probably be more profitable to exit 3Dfx now and make a decision whether to reenter then. Toward the end of the quarter we MAY see some Voodoo3 shipments but probably not enough to maintain current estimates. Expect that Rampage specs won't be release until May 99 to allow time for the Voodoo3 3000 to get some decent sales numbers before trumping some of the demand. For all of you who are gloating over this deal, please remember that while the potential reward has grown, the risks have substancial increased as well. Imagine what happens if Nvidia decides to be vindictive and slow supplies of TNT chips to STB. It is STB that has the contracts to supply the OEMs and it is responsible for delivery, EVEN IF NVIDIA CUTS OFF SUPPLY OF ITS CHIPS! While this would undoubtably slit Nvidia's throat if it were independent, it may be a worthwhile move if Nvidia were acquired by Creative. In the latter case, Creative can create a situation which is extremely embarassing to STB and which could result in damaging STB's OEM contracts and relationships allowing Creative to "step in to the void" to supply the TNT boards. OB