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

To: buckeye3d who wrote (12112)	4/28/1999 5:21:00 PM
From: Piranha	Read Replies (2) \| Respond to of 16960

This is probably not the case, but let me throw out one possible explanation: is there ANY possibility that she's confusing 3dfx with 3Com? 3Com already is in the handheld market with the USR "Pilot" line. I don't think I've ever even HEARD 3dfx and handhelds mentioned in the same breath before this came flying out of left field. Piranha

To: buckeye3d who wrote (12112)	4/29/1999 1:07:00 AM
From: Ben Wu	Read Replies (1) \| Respond to of 16960

whew, i hope this fixes everything with the "babe" i got kinda pissed when i first read her article. Wild generalizations everywhere, with virtually no data/sources to back up most of her claims. so i decided to post a reply. Spent a little more time on the "rebuttal" than i originally intended too, but now i feel a lot better =). ( argh, gotta go back and study for midterms!! ). I'll post any reply. Quoted from 4/26/99 "Street Slam" "As for 3Dfx, while the company might believe that its future lies with handhelds and the like, it continues to face a core problem which is yet to be resolved anytime soon." Your article has been discussed with impunity on the Silicon Investor (SI) 3dfx thread and the consensus there is that you either had accidentally mixed up 3dfx (TDFX) with 3com (COMS), or that you know absolutely nothing about what you are talking about. I am personally hoping for the former. 3dfx (not 3Dfx) is a PC graphics chip company (and will very soon become a PC graphics board company). As a long term investor in 3dfx and an avid computer gamer, I have studied and followed 3dfx's history, their business model, and have been through their greatests successes and worst failures (as have others). Your comments make absolutely no sense with regards to 3dfx. Handhelds are NOT part of 3dfx's business model. They don't even fit in 3dfx's core expertise. A poster on the SI (who had written earler to you) stated that you replied to him saying that you know that 3dfx will indeed be coming out with products for the handheld and settop box markets. But you refused to mention your sources. There has been NO PUBLIC KNOWLEDGE about the development of a handheld and ONLY WILD SPECULATION about the development of a set-top box. If you are providing analysis on 3dfx's future based on speculative, non-announced, and non-shipping products that don't even make sense when taken in context of 3dfx's history and expertise, then I would have to either question your sources or question your ability as an analyst. You mention Intel as a major competitor to 3dfx. But time and history have shown that 3dfx's products have had spectactular retail success in addition to moderately successful computer OEM penetration despite "competition" from Intel. Intel has been nothing but a small road bump in 3dfx's wild ride. The Intel's i740 and i752 graphics processors are in a completely different market segment of 3dfx's products. Intel aims its products at low end <$800 PCs. 3dfx focuses itself in the performance mid-range market. You also mention "core problems" within 3dfx. I am very interested in what you perceive as "core problems." 3dfx is currently launching a highly received and, from all initial indications, a highly successful new product line, the Voodoo3. 3dfx has been steadily increasing their market share in the OEM market and still maintains a sizeable presence in the retail channel. In fact 3dfx is currently in the process of completing a merger with STBI to solidify their market presence in the OEM market. 3dfx also enjoys a sizeable R&D advantage over the rest of its competitors. All indications and data would all seem to point to 3dfx as a future star, one capable enough of providing serious competition to ATI and S3, the current #1 and #2 manufacturers of PC graphics cards. Again, I would like to point out that your comments seem to fit 3com (COMS) more than 3dfx. 3Com makes the popular Pilot handhelds and are in direct competition with Intel on several levels (noticeably in the network hardware deparment). If that is the case, then I hope you will correct your article. The internet is great medium for the spread of misinformation, both accidental and intentional. If you feel that your analysis is correct then I and many others are personally hoping that you would clarify your assumptions and explain your sources more explicitly. One thing that I've learned, is that to be taken seriously, one must be willing to explain themselves and admit mistakes. Otherwise you'll just become another obnoxious, loud, and disinformed voice in this sea of people who call themselves "analysts." Sincerely, Ben Wu