Michael,
To support your case: If you could buy a $1 bill with 90 cents, how many
$1 bills would you want to buy? Surely as many as you are capable of.
S3's book value is some $5.50/share, that is, book value, not replacement
value which appreciably higher. If the stock drops below $5.50/share
S3 can buy its own stock back and increase its book value.
That's why, the down risk is limited under the current circumstances.
This is not the time to liquidate one's holdings.
To All:
On the issue of lawsuits, read the Forbes issue of November 17, 1997
page 14 & 15. It concerns a San Diego-based king (William Lerach) of
class-action securities lawsuits. Essentially, it comes down to that
they file lawsuits, supposedly on behalf of investors, when companies
do not meet analysyt's expectations. Companies usually settle rather
than fight, with little money going to individual shareholders-and
lots going to the lawyers. Lawyers are supposed to report to their
clients, but Lerach pretty much decides whom to sue, when to settle
and for how much. Lerach allegedly said: "I have the greatest practice
of law in the world. I have no clients."
Some judges are already throwing out frivolous lawsuits not backed
by substantial shareholding in the sued company.
Let me guess. I think that the lawyers suing S3 now initiated the suits
on behalf of how many shareholders!? Or, did they file suit hoping
they could find some shareholders to support them? The latter sounds
more plausible.
Are these of the Lerach kind? Several of them claimed to be specialists
in this field, so I would say chances are better than 50% they are.
I have another problem, which lawyer should I support. I do not want to
bet on a loser. I guess you all have the same problem. So, now we have
x lawyers fighting for one bone. Who will be the victorious one?
On representation, I have been part in two class-action suits (the pay-
out was not even pennies on the dollar), but I do recall I was never
consulted or asked. I was just told.
While the suits won't go away, I just can't see that these are going
to be a factor in the end.
Just MHO
Jan |
