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

To: Sun Tzu who wrote (10358)	1/28/1999 4:51:00 PM
From: Gopher Broke	Read Replies (1) \| Respond to of 16960

As someone who is long CREAF as well as TDFX (OK, a really dumb investor) I am interested in your reasoning behind shorting. From the report you posted, graphics was 9% of CREAFS revenue, but they always (fortunately for them) sold TNT and others as well as Voodoo. So we are talking a downside of maybe 5% (and I think it is premature to assume that TDFX have now won the graphics war hands down) against probable upsides on DVD (now) and MP3 (future). Their stock price is also very depressed at present - "It is trading at a large discount to its peers, at 7.5 times its 1999 earnings," DBS's Tan said, referring to current prices.(about 8 times 99 earnings) Also I have seen predictions that the next Q will be frontloaded by Christmas back-orders. They are also paying a 0.50 dividend, which I believe was partly done to support the share price by allowing Singapore income funds to invest in the company. Plus they will be supporting the stock themselves by buying back 10% this year. I don't see it as such an obvious short?