S3 (Multimedia semi's place 2be) Message Board

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Technology Stocks : S3 (Multimedia semi's place 2be)

SIII 0.0001000

0.0%

May 12 5:00 PM EST

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To: RICK SCHINZEL who wrote (7446)	1/26/1997 5:53:00 PM
From: Jerome Ball	of 9477

To all, I look at it this way. S3 reported 157M in cash and 58M shares fully diluted. So we can buy their earnings stream for $16.5 - $2.70 = $13.80 a share. The stream was $.95 in 96, $1.30 in 97. The company has a reputation for conservative management and making estimates. So you buy this year's earnings at a multiple of 10.6 on a stream that has a 35% growth rate. And that's ignoring the new areas this company is getting into (sound, laptop vid, DVD, ADSL for heaven's sake?) Does the current price make sense? Frank(monroe)ly, no, it doesn't. Doesn't have to, either, not for a while. You just have to wait and ignore the noise. In fact, you have to do more than that. I claim you can't rationally look at this situation in S3 and not want to buy the stock at this price. You don't like the "short-term outlook" or the "recent chart activity"? Then hold your nose while you sign the check. Even DAMIEN should be buying at this price, and probably is.

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