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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: Niels Larsen who wrote (7620)1/29/1997 5:07:00 PM
From: Phil Fischer   of 9477
 
Hi Niels,

The fact is no one knows how future competition with INTC will pan out. This includes S3 management. I am content with the efforts management has made regarding forward looking statements. This is a rapidly changing industry, the future cannot be predicted. Another point is that S3 will not want to reveal too much of their future plans as this is information that competitors can use. There is a fine line between giving predictions for the near future and tipping your hand. I do not blame management for stock price, I blame uncertainty in the industry. There is no simple way to combat this uncertainty because it is justified. Some on this group give unreasonably rosy picyure of S3 future, this is by know means certain, be sceptical. I do not want to micromanage this company (even if I could) so don't count on me to write a letter. If you do not like the risk then I would recommend not investing in this industry.

Phil
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