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: Michael who wrote (8288)	12/11/1997 12:02:00 PM
From: bob yahnke	Read Replies (3) of 14577

Michael, what I'm saying is that this is all changing. Book value of lets say $5 a share today could be $3 tomorrow. All it would take is a $100 million charge off on inventory and restructuring charges and you'll lose $2 a share in book value. Plus you depleted your cash down to nothing. Nobody should invest in a company based on book value alone. What S3 needs is major cost cutting to keep the profit margins high and pricing presures under control, along with shorter product cycles. I'd rather have a company with no book value and profit margins at 50%. Because I know with 50% profit margins the book value will come. This is not the case for S3. They need to whip the slate clean. If they don't do anything fast, it's all over.

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