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

To: UCLAlumnus who wrote (10341)	1/27/1999 8:11:00 PM
From: Chip Anderson	Respond to of 16960

Totally Gung Ho - but still long-term focused. Long-term factors for "Gung-hoey-ness" include: 1. TDFX has had a longer start on creating the next generation than anyone else in the industry. Expect a "next generation" product from 3Dfx by mid-year. 2. "Quake3" and "Unreal Tournament" will continue to increase the popularity of multi-player gaming. 3. "Star Wars" mania will probably increase awareness of 3D gaming among mainstream consumers. 4. Intel's new generation of motherboards (with AGP 4x) will cause current hard-core gamers to upgrade systems before the end of the year. (Even though I personally am skeptical of the benefits.) Also, Intel CPUs have been stuck at 400-450Mhz for an entire year now. New 600+Mhz should appear by mid-year sparking more upgrades. 5. 3Dfx will be a "complete" brand now - a pure hardware play with good marketting presence. Sure, there are lots of competition, unknowns, and risks associated with the stock, but those are the key long-range factors in my mind. Chip coolhistory.com

To: UCLAlumnus who wrote (10341)	1/27/1999 8:22:00 PM
From: Chip Anderson	Read Replies (1) \| Respond to of 16960

From the Motley Fool: ================================ 3Dfx (Nasdaq: TDFX) remains an enigma. The company almost turned its five-cent per share earning estimate into 3D, reporting $0.13 per share, well above expectations. Yet the stock tumbled. Fourth quarter results for 1998 were two cents lower than earnings in '97, even though revenue grew 170% to $60 million. What's down? The company's gross margin fell to 36% from 48% last year because it's selling more low-end and less expensive product. 3Dfx now has $1.33 in trailing earnings per share, putting the $12 stock at a P/E of 9. Unfortunately, this isn't unusual for a small chip-related technology company. With $95 million in cash, however, the company has nearly $6 per share of value backed by green money, so how much lower can the stock go? Hmm. It trades at 19 times the earning estimate for 1999. To hear the company's conference call, dial 800-633-8284 (access code: 11550030) for 24 more hours. ================== Chip