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

To: JAG who wrote (12659)	5/17/1999 10:42:00 PM
From: Michael G. Potter	Read Replies (1) \| Respond to of 16960

JAG, If your first few posts had been like the one you just made, I think you would've had a better reception. If Diamond and nvidia merge, they wouldn't spin the graphics division anywhere as they'll be the same company. Did you mean that nvidia management would run the graphics part of the company and Diamond the rest? Who would get control here? Diamond doesn't seem to be in the greatest financial shape and may have gone all out to win OEM's this go around. At what profit margins? Fab space may be a problem. Now 3dfx got their orders into TMSC earlier and have had chips coming out for a while. Also, they've both been customers for a while and may get priority. Many of the announcements have been for nvidia chips as an upgrade option. The 3dfx conference call tomorrow will be interesting as they try and explain where their multiple tier 1 wins are. On another topic, Somebody bought a bunch of big blocks today, but that also means that someone sold all those shares. I always laugh that the buying of the blocks is shouted out load, but there were sellers there as well. Of course, the conspiracy theorists would say that the evil market makers drove the price down so they could acquire cheaper shares to sell into the big institutional demand <forgeting that the mutual funds and pension funds would strangle the life out of market makers trying that>. Michael

To: JAG who wrote (12659)	5/18/1999 11:42:00 AM
From: Plaz	Read Replies (1) \| Respond to of 16960

You make some interesting points: Diamond and NVDA will merge. Diamond will spin its graphics division into NVDA. Why? I think nvidia will try to merge with somebody for all the same reasons that 3dfx did. But the question is, who wants them? I thought it was interesting that creative, who presumably has knowledge of 3dfx's road map, chose to invest $10 million in 3dfx stock last fall. They of course dumped the stock once 3dfx announced the STB merger. But did they buy nvidia stock to the tune of $10 million? Not that I heard of. They were already invested in nvidia (just like diamond and stb) to help keep them afloat until their IPO, but I don't think they bought any more. Neither diamond or nvidia are financially all that strong. Creative has lots of cash, but there may be conflicting personalities between the CEOs. What will happen? Hard to call... I'm guessing it will be someone else: leadtek, hercules, go it alone and contract board manufacture? 2. S3 has announced significant design wins Selling a part for under cost can do that. It worked well for the i740 too. This competes against ATI and Intel's whitney the most though. The S4 is slower than an original TNT; I don't think it's in the same league as the V3 or TNT2. I am concerned about the fab space too. I read where nvidia is using TMSC's US fab factory now. I don't know what the significance of this is, if any. Is it better, faster, more expensive, or just another factory? Somebody please ask 3dfx about fab space pressures and what they've done to insure production! Plaz