Good Morning All, let me first say I think the market pressure is showing up on this thread the current "tone" here.
< historical perspective.> Think about those words.
< The Dow and the markets in general have a "historical record"
and those who fail to appreciate or understand that historical perspective are bound to repeat its mistakes.>
We are in the middle of a pretty good tech meltdown, not as bad as I've seen but worse than most.
<I guess this is my main concern. If S3 is indeed a leader in the industrty, and if they have the design talent and the products in
the works, why is this stock trading lower and lower all the time?>
Good question, my only responce is in the absence of any real hard info from management and the presence of uncertainly and rumor, that is a perscription for weakness. Above all the market hates uncertainty ,if S3 would only come clean, the market could then fairly value S3.
< I just want to find a balance between the Jan's and the Bob's,
who either love this company or think it is going to go belly up in the near future. Can somebody find me a balance and convince those of us who read this thread that there is a good reason to buy at these levels???>
I believe I offer a very balanced view, as I have often said in the past, things are never as good as they seem or as bad as it would appear. The market almost always over reacts in both directions. Having said that, I am now left holding 100K worth of S3 stock that is now worth less 55k. What I do know is,(1) this is tax loss selling season, (2)in Nov. 97 S3 admitted a accounting problem,(3)we are in one of the worse tech recks sell offs in recent history, (4)there is a ton of cash on the sidelines waiting to be invested.
I will close out my position in this stock, however I'm not stupid, I won't sell into the current weakness. In 1998, if S3 management does not lift the uncertainty, "time" will, tax loss season will be over and the pressure abated, tech will once again come into favor, and the mounting cash on the sidelines will be put work. If the market has nothing else, it has a short memory, all S3 would need to do is deliver and most all would be forgotten. Take a look at CREAF when it was at $4-5-6-7 and what was beening said about it. My point is there will be a better time and price to sell at or if your thinking of buying worst $4 dollar stocks to invest in. I believe S3 will sell at higher levels during 1998 than $4-5 bucks. I hope that presents a balanced view. |
