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: JAG who wrote (9039)	1/28/1998 9:52:00 AM
From: Calvin Scott	Read Replies (3) of 14577

Jag, don't forget the "stockholders" poison pill that was put in place by management last summer. Your $252 million purchase price is actually well over $400 million. Plus, you are banking on SIII's new products such as the GX3 and Vortex. These are not in the market yet and as good as they sound, are still unknowns as far as how they will be received. If you look at their fab investment, don't overlook the fact that new fabs are popping up as I write this. There will be a certain amount of dilution not only in "contract" fabs but also fabs owned by the big boys such as IBM, INTEL, AMD, etc. I do believe there is a fab value but I can't believe it will appreciate much more than its current value. Also don't forget that .18 micron is upon us and that this fab, supposedly, is only capable for .25. SIII will have to invest the value they have in this fab into the next round of technology. I don't discount the fact that they are an attractive "buy" opportunity for someone but that "someone" has to be mighty particular. I believe more along the lines that they already have a suitor and that they are getting their house in order prior to the fire sale. I also believe that this "investment" of the Cirrus patents is tied to this and that the "someone" is one of the companies mentioned previously along the lines of "patent" infringement. Calvin Scott

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