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


To: Philip W. Dunton, Jr who wrote (10452)2/1/1999 7:39:00 PM
From: Joe Pirate  Read Replies (1) | Respond to of 16960
 
Whether or not to buy TDFX ?

Lets look at the TDFX history per qtr.

1996: (IPO)
1.887 million
4.503 million

1997:
5.247 million
6.507 million
10.018 million
22.287 million

1998:
50.008 million
58.643 million
33.206 million (hick-up)
60.743 million (spectacular rebound)!!!

Spectacular growth !!!

But... stock price is 3 dollars less
than the IPO price ($15?)...

Go Figure!!

Pirate



To: Philip W. Dunton, Jr who wrote (10452)2/2/1999 12:10:00 AM
From: Patrick Grinsell  Read Replies (1) | Respond to of 16960
 
I sold because the stock seems to have a history of collapsing after the earnings reports.

Congratulations. I deluded myself into thinking I own the stock long term. As such I held on.

So much for that investment discipline.

Is TDFX a buy again? I know this graphic chip business is a bit dicey. I'm tempted to get back in because it has traded down to a support area.

3dfx is a very risky stock. Anybody who has a personal target lower than $20 over the next year is either day trading or taking more risk than they need. There are plenty of stocks that can give you that kind of return in more stable industries. Let's just say my price target is much higher.

Are things really that bad?

No.

What's the outlook?

Contracting industry. Under 5 real players by the year 2000, of which 3dfx has the best chance (other than ATI) of making the final cut. Quarterly earnings with new business model should explode. Next generation chipset (over 2 years under development) due out soon.

I wouldn't own the stock if things didn't EXCEPTIONALY good.

Pat