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

To: Curbstone who wrote (10467)	2/2/1999 8:17:00 PM
From: Joe Pirate	Respond to of 16960

>>In addition, these Voodoo-powered boards won the best-selling status >>at retail 12 out of 12 months last year in the gaming/performance >>segment. Absolutely, noone could touch the Voodoo!! Lets apply the old wall street saying. "The stock price of a company NOW is based on what the company is projected to do in 6 to 9 months from now." Well lets see if this works. TDFX was around $10 - $14 after IPO, lets use the August 1997 price. They are projected to do well as the first earnings report came out and shows wall street that this company is "alive". TDFX starts to climb as wall street suspects that TDFX will do well in 1997 - 1998, and after 8 or so months of climbing wall streets awards TDFX a share price of $34 in April 1998. Market drops, Asian Crisis popping up here and there, TDFX bleeds down to $8 - $9 bucks (all the stocks got hit..). Then TDFX posted declining earnings in September quarter, from $54 million previously to $33 million, so during that 5 month span, the price was declining. As the market recovered, money flowed into the big name stocks and speculative stocks stayed low. Now that is not too cool. Now wall street should be projecting TDFX to do well as they had a great quarter, 60 million, what a rebound from 33.. But, how come the stock doesn't rise ?? Well, someone has spoiled the soup, wall street seems to think that the current price of TDFX is what the company is "worth" in the future. Why ? Are they worried about the other companies making their move with their new products and in 6 to 9 months from now, the story will be different ? Who knows, but if S3, ATI, Nvidia, 3D labs didn't exist, I am sure that the wall street "sharks" would have plans for this stock. These sharks are after "money" only.. money money money............... your money.. Pirate

To: Curbstone who wrote (10467)	2/2/1999 11:03:00 PM
From: Joe C.	Read Replies (1) \| Respond to of 16960

TDFX seems to be making a concerted effort to stress the importance of retail, eCommerce and the TDFX brand name recognition to the investing community. Currently, the investing community (including myself) is focused on the OEM Gods as an indicator to future profitability. It is much easier to quantify a large OEM win - lot's of boards sold. It is much harder to quantify the retail upgrade market. Both are important to TDFX's plans for growth. High volumes grow the installed base (good for branding, software developer support, etc.) and provides steady sales. Retail brings in much higher margin dollars. STB merger concerns have been name recognition and lack of retail distribution. TDFX attempted to address both concerns today by showing how they dominate the current retail market (name recognition) and by reminding us that eCommerece will play an extremely important role in the future. Consider that the V3 3000 is going to sell for about 30% more for essentially the same product in terms of overall unit costs. No one else has this luxury. Joe C. 4 V2's on one board? how 'bout 4 V3's while we're at it?