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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: Trent Stepp who wrote (9133)6/5/1997 12:45:00 AM
From: hui zhou   of 9477
 
Trent, my view is: a. PC sales is not strong in this Q, S3 predicted weak 2 Q result. b. Graphic chip price is down more than anticipated, therefore hurts the margin. c. Street has been assumed those design wins, thus no big deal. Imagine if S3 lost its market share to the rivals, they will be in big trouble since majority of their business is in graphics. Therefore, all announcement just confirms that S3 is doing OK now. It firmed and pushed the price a little bit, but not much excitement. The real excitement came from the new initialtive, like S3-Faroudja joint development. It helped the stock move higher by 2 point. I called it a meaningful real news. I hope it helps.
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