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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: Keith Dykstra who wrote (7447)1/24/1997 8:24:00 PM
From: RICK SCHINZEL   of 9477
 
I certainly cannot say I agree with you; however, your opinions are always apreciated and welcomed. I am not sure where you get the information that it is believed that S3's stock price has topped out for the year??? Please enlighten me on that. I will not disagree that the chart doesn not look good; however, I believe you are very much underestimating the strength of the support at the 16 level. If you look at the weekly chart, support has been rising rapidly as S3 has tested the 16 support over and over again. As to when S3 will finally break out to the upsdie who knows. I don't believe the market, and rightly so, has given much consideration to future revenue from their new products, especially audio. I am not saying that they should until they see results of testing and some oem wins, but my brother works for CompUsa and he advises me that this new Sonic Vibes chip will be the hottest thing since sliced bread (as indicated in a past post) and moving to the PCI BUS is truly a technological breakthrough that will dramatically increase the audio performance capability over previous products. It is also compatable with Microsoft's existing drivers. In any event, I think we will be stuck in the 16 to 18 range until S3 can attend some of these conferences they have scheduled and educate analysts on some of the new products being deveolped and until they get some wins under their belt. Until then, they will continue to ship more and more graphics and 2D chips and, according to the conference call, will keep their leadership postion with a similar percentage of market share going into next Christmas. These are just my humble views...take them with a grain of salt.
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