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

To: John Finley who wrote (9733)	12/16/1998 2:06:00 PM
From: Jeff Lins	Respond to of 16960

Something I hadn't really ever thought about... Either you like this merger or you don't (or you don't care). If you don't care, you leave any shares you have where they are. If you like the deal, you may well buy STBI. If you hate the deal you either sell your current STBI/TDFX, or short it. So if the buying pressure comes from STBI, the selling pressure goes to TDFX, what keeps TDFX (and hence STBI) up? Sure, I guess if you like the deal you can buy TDFX and minimize the risk of the deal not going through (but you have to think the chance of it not going through is zero- We have burnt our bridges with our best customers, and STBI has burnt a bridge with their biggest chip source). And perhaps the market makers are keeping it up while they maintain inventory- or sell off in reasoable amounts...I don't know. What keeps TDFX up (relatively speaking...it ain't up as much as I'd like :)