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

To: Curbstone who wrote (10275)	1/26/1999 5:23:00 PM
From: Dan Woodbury	Respond to of 16960

Don't have access to the CC but here's why I'm bullish on TDFX/STBI 1: Now that TDFX will own the video card as well as the chip, revenues will grow considerably. I'm expecting combined revenues to grow 50% to 100% in '99. While profit margins will be lower, growing revenues will provide the company with a very attractive cash flow to fund R&D, buy back stock and turn TDFX from a small-cap to a mid cap company. 2: The Voodoo brand is strong. The naysayers of the TDFX/STBI marriage seem to think that it was Creative or Diamond that made the Voodoo so popular. Not true. The brand is the technology and Voodoo is the technology that made the Monster boards such big sellers. 3: The competition is dwindling. It is basically down to ATI, NVidia and TDFX with Intel making veiled threats ever so often. TDFX and NVidia own the high end of the market while TDFX's Voodoo3 strategy will grab considerable market share from ATI in '99. 4: The key to industry success is to be #1 and TDFX is well positioned to maintain the top position in the high end video card market and to grab considerable market share in the mid-level market. All in all, TDFX provides an attractive risk/reward opportunity at todays prices. If the company can execute its game plan and hit its 1999 goals I expect the stock to provide a very nice return.