S3 (A LONGER TERM PERSPECTIVE) Message Board

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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)

SIII 0.0001000

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May 12 5:00 PM EST

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To: investz who wrote (7564)	11/7/1997 5:37:00 PM
From: Jan A. Van Hummel	Read Replies (1) of 14577

Eric, Think about it. At the present time, the stock is at abt 1.5 times BV. So for every $1 the company has in assets, the market values it at $1.50. Let's say the BV is $5 and the MV $7.5. Would you rather see the company pay you $2 thereby reducing their MV to $4.5 ($3 x 1.5)? You gain $2 in the settlement but lose $3 on the stock value. Or, while the suits continue, the company turns in a much better 4th qtr and the market rewards them by valuing the stock at 2 x BV. Then, any payout will hurt the shareholder even more than no payout. This is kind of a simplistic approach because a) the lawyers will take most of the proceeds (believe me), and b) the payout will be insignificant, if there will be any. Obviously, all bets are off when the company is going to tank, but I have not seen any signs of that yet. If you do, let me know. Just MHO Jan A. Van Hummel

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