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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: John Stockman who wrote (8539)4/3/1997 5:09:00 PM
From: stock talk   of 9477
 
John, I'm dying to hear your answer to this one, and I quote you:

<To: jim A (1193 )
From: John Stockman
Mar 27 1997 5:19PM EST
Reply #1194 of 1203

Jim,

You were very wise on picking up some VLSI stock.
My fellow associates also participated in purchasing some.

Just hold onto it for awhile, and by the end of the year you should be able to double your investment. It's the smart move in this market.>

Now buying vlsi is wise and S3 is a dog???

Lets look at the facts:

VLSI =NO GROWTH in revenue the last 6 quarters, Q9/95=188m, & now Q12/96=183M
SIII = 60% GROWTH in revenue the last 6 quarters,Q9/95=83m, & now 12/96=132m

VLSI =net profit margins gone DOWN last 6 Q's from 8.6% to 4.4%.
SIII =net profit margins gone UP last 6 Q's from 11.2% to 12%.

VLSI =net income last 6 Q's cut in HALF from 16.2M to 8.1M.
SIII =net income last 6 Q's UP 50% from 9.9M to 15.5M

VLSI = PE= 35.4
SIII = PE= 12.3

VLSI = ytd -28.8
SIII = ytd -23.2 HELD UP BETTER IN A DOWN MARKET.

Now did I understand you right?? You think VLSI will trade at $34.00 in 1997 with a pe of 72 and thats "very wise" and to believe that S3 won't see $22 this year?? Please give me your reasoning.
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