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Technology Stocks : S3 (Multimedia semi's place 2be)
SIII 0.00010000.0%May 12 5:00 PM EST

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To: Troy Christensen who wrote (7198)1/21/1997 8:46:00 PM
From: Haim R. Branisteanu   of 9477
 
Troy, the meaning of this statement is that the growth rate of S3 is lower than 20% or so as in the past.

Therefore the PE multiple is shrinking. For example IBM reported $3.93 and the stock is at 168. Devide it by 10 you will get $0.39 earnings and a stock price of 16 7/8.

S3 had only 0.29 in earnings not 0.39.

I hope it makes sense

Happy trading

Haim
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