I think everyone who follows this thread is getting impatient with S3. However, I also think we all need to take a step back and really examine what is going on. We are in the midst of a fairly unusual bull market and perhaps, as stock investors, are getting a little bit spoiled. I took a position in S3 about 9 months ago, and as of today, show about a 24% return... not bad by most historical standards for investing, but compared to other alternative investments, a bit disappointing. In the past 9 months I've seen S3 dip to intraday lows of under 10 and intra-day highs of over 24. Alot of us added to our positions in the 10-14 range, and are making money... a few of us bought in the 20+ range and are licking our wounds.
Did I invest in S3 to make a quick buck? no... I **invested** in S3 since they are a dominant firm in an industry (PCs) which we all know is growing and will continue to grow at a rate substantially higher than the growth rate of the overall market. My expectations were to see S3 double in about 12 months... so far, that looks like it won't happen. Disappointed, sure, but 24% in 9 months for my worst performing stock is still a decent return on my money considering its only *part of a semi- iversified high-tech portfolio.* If I had invested all of my money in S3 and sat on the sidelines watching INTC, MSFT, DELL, CSCO etc. sure I'd be mad. But I think alot of us who follow this thread follow the computer industry pretty closely and as such, have money in these stocks too (thank you INTCW and VPJAD !!). Isn't the point of investing in stocks to take a position BEFORE everyone else does?? Last year I lost patience with EMC after seeing it trade in a similar range for a similar time frame... same with STB Systems... I'm kicking myself for losing my patience and selling those stocks before they took off. Whatever the reason for S3's stagnation, the street cannot ignore good fundamentals and earnings forever. It may take two years instead of 1 for me to see my "double" in S3 but I can live with that type of return. In the mean time, I'll enjoy the ride with INTCW and VPJAD (Applied Material 1999 20 Leaps) but I have NO intention of selling S3 before the fun begins.
Good Luck to all in 1997 |
