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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)
SIII 0.00010000.0%May 12 5:00 PM EST

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To: Adrian Wu who wrote (7206)11/4/1997 12:44:00 AM
From: fiberman  Read Replies (1) of 14577
 
<by the tremendous cashflow that
S3's low end products are generating. Don't worry about the joint venture; >

Adrian, what are you talking about??? They will be giving away these cheap chips to cheap customers. They will not make any money selling these chips. They will be lucky, if they break even on them. Most probably when you add the cost of sales & marketing and discounts and other B.S. which is involved, the will be attching a $5.00 bill to every chip that they dump. If the new higher margin products don't make it, that is the end of S3. Joint venture & their building is all that is left. Creditors take your number and wait at the end of the line.
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