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Technology Stocks : S3 (Multimedia semi's place 2be)
SIII 0.00010000.0%May 12 5:00 PM EST

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To: Norrin Radd who wrote (8420)3/24/1997 3:29:00 PM
From: wongd   of 9477
 
Tom,

STB just announced the new graphic accelerator which based on the Virge GX chip and have retail price of $99 (after rebate). The price is very competitve for 3D accelerator. I think we are going to see more feature (TV out, dual view, DVD enhanced, faster 2D/3D performance, etc) are being added to the current 2D/3D accelerator and still maintain the low entry price point ($99 - $129). This is the way to fend off the Intel and 3D lab attack. I think Intel has alot to catch up to come up with a similar feature and low cost accelerator. Probably they will just focus on the high end market and leave us alone, or they are better off get back on the microprocessor business. 3D lab may well get back to the high end market as well. So I think as long as S3 stays focus, they will have a bright future. The stock is beaten up so badly, the shorters should be happy now. I believe the shorters are giving us the opportunities to buy the stock at a deep discount.
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