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

To: Eric Anderson who wrote (12058)	4/27/1999 11:33:00 AM
From: Daniel P. Dwyer	Read Replies (1) \| Respond to of 16960

The volume does not suggest that this is a major sell off. The Intel 801 chip is not new news. I believe that this chip will allow the power of 2D and 3D chips to really sing. I do not believe it is a direct competitor, but I could be wrong. As far as the more traditional competition, they are gearing up for a couter attack to last week's tdfx onslaught. So, that could be telling. Then, there are those oem wins, and to date tdfx has not been all that impressive. I still think the retail end is where tdfx must dominate to stand a chance at future oem wins. Otherwise, they will not have the branding necessary to distinguish itself from others. The price action could also be last minute arbitrage, as we get closer to Friday's vote. If the shorts are increasing their position, it is because they believe that the merger will unravel. That is hard for me to believe, but both companies are doomed if the merger does not go through, so that spells some vulnerabilty. As far as a healthy pull back is concerned, we are at the point where a lower price becomes unhealthy. The month started at 12 and change and got to 21. A typical 50% pullback would have the stock at around 16.5. At that price we should see some buyers come back in. Dan Dwyer

To: Eric Anderson who wrote (12058)	4/27/1999 11:47:00 AM
From: Obewon	Respond to of 16960

This should have been expected considering the "Whitney" release tomorrow. "Whitney" per se is not really the threat as 3dfx was never a viable option for low-end machines. ATI and S3 are going to get their heads handed to them though. The threat Intel introduces is that "Whitney" supported motherboards WILL NOT BE UPGRADABLE at all. Therefore, none of the graphic accelerator card makers will be able to sell their cards to the user who decides to purchase that machine. This limits the upside of increasing personal computer sales IF people buy "Whitney" machines. Analysis of the market and a close look at recent history (Intel's 740 chip) reveals that lower cost will not necessarily translate to higher sales when the inferiority of a product is evident. While I am sure that Intel's "Whitney"-supported motherboards will be adopted by the bargain-basement sub-$500 computer makers (since their strategy is low cost), the meat of the market will not accept the step back to a weak, non-upgradable part for the sake of $30-$50. Obewon Waiting for the Merger approval announcement on Friday!

To: Eric Anderson who wrote (12058)	4/27/1999 11:52:00 AM
From: Joseph Hoane	Respond to of 16960

ON topic -- Let me refine my previous statement. I looked at the chart when it was at $17 1/2 and thought that $17 might not hold. I have no idea where buyers may come in now. The recent run up was too steady to see where the support might be. If I had followed the strategy I outlined about a week ago, I would be fully invested, (long) right now. I have no idea where to put a stop, which is one of the reasons I am not in now. oh, this makes it sort of obvious: quote.yahoo.com My paper plans: A. The buy order goes just below the 50 day MA. No stop. B. I could buy 1/3 now, no stop, 1/3 below the MA, buy 1/3 at discretion when it "looks like a bottom." Plan A is for a bullish trader, plan B is for a bull. Sorry about all the trading strategy, but I'm not enough of a true believer to just go long and hold. Plus it would be a margin purchase, so by definition it would be trading, not investing. Please, no lectures about use of margin. If I used plan B, I would probably be a pig, not a bull. Plan A should be OK. Thank you for providing a forum whereby I could understand what to do. You have no idea how helpful this is. I must wait to enter TDFX. Thanks, I hope this helps somebody besides me, Joe OK, buy @ 14 1/4 is in.