It probably won't surprise many but I have decided, since we did not continue to fall yet today, to stick it out a little while longer. Looking at the volume today i jsut have to agree that we are going long periods of time without trades and the volume is generally low. It looks like a couple of sells in the 5oK area and a buy of app. 100K. I just couldn't pull the sell trigger yet...not at these levels.
In response to your question Dave, I am not sure of the exact level of revenue produced directly from Intel. I am sure that an Intel graphics chip targeted at the high volume market would surely effect S3's market share, but to what degree who knows. This is where the big investors have their questions and is probably why they are staying out. But of course, if they were in right now, would we be at a bargain price of 16...no. So, you have to ask yourself, do you believe that S3's new audio line, their new line of graphics chips, their future communications and notebook chip productsm, and their investments in companies specifically geared towards 3D on the internet are intended to offset any market share loss down the road in 98 to Intel. If they are intended to do that, and they are successful with these new products; whatever they lose to Intel will be MORE than made up for. Someone stated that these new products won't make 5 cents on 97 revenues...and they are right. But we don't need them to make us revenue in 97...our graphics business WILL do that for us this year. Management is looking at 98 just as the analysts who fear Intel are. If S3 is successful at thwarting off the Intel threat or offsetting it with new products, the market will finally believe and the price of S3 will go throught he roof. As some have pointed out, this may take lots of time..maybe the rest of this year..but the payoff could be big, that is why I can't get myself to sell yet. Support is strong at 16 and I will have to see that break before I will be able to psychologically sell. It is good to be back, although I never actually left. |
