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

To: Chip Anderson who wrote (9941)	12/30/1998 2:56:00 PM
From: Curbstone	Read Replies (3) \| Respond to of 16960

Looks like an upgrade (?) TDFX: MOVES TO NEW STRATEGIC MODEL WITH STB ACQUISITION December 30, 1998 SYMBOL(S): TDFX ANALYST(S): MOOSA, ELIAS RATING: NR Download PDF Synopsis: The following synopsis is qualified in its entirety by the more detailed information contained in the full research report, including the discussion of certain risks associated with an investment in this security contained in "Investment Risks." Research dated prior to September 1, 1998 was prepared by an entity that was acquired by BancBoston Robertson Stephens Inc. On December 14, 3Dfx announced its plans to acquire STB Systems Inc. (STBI, $6.44). STB is a leading manufacturer and distributor of multimedia products and has been a 3Dfx customer at times. 3Dfx's acquisition of STB is scheduled to close in March of 1999, pending regulatory and shareholder approval. In our view, this acquisition fundamentally changes 3Dfx's business model. We believe this purchase allows 3Dfx a clear view of its customer needs, opens new customer bases, and unleashes synergies that could be substantial. However, this may come at some price for the company, as current 3Dfx customers could be alienated. As 3Dfx becomes a much larger, vertically integrated company with this acquisition, substantial enlargement of our financial model could occur, albeit with thinner margins. We view this acquisition as an imperative for 3Dfx to effectively compete in the future landscape of the PC market. Over time we believe that investors could begin to appreciate the strategic positives of this pairing, and the superior match between the two companies. ***************************************** PS: Mr. Moose, if this constitutes a copyright violation please let me know and I will not do anything like this again.