S3's self fulfilling prophesy. From a TA stand point, because the number of the longs are larger than the shorts, it will break the 19.50 barrier with the next two days. Then the buy recommendations will mount and run-up to the 20's will begin. I have beaten up this stock in the past, but now that we are all into money I can praise it. You can thank me later.
S3 is the Intel of Graphics, this does not mean that these guyes have the same margins as Intel, but on the same token, the margin level of the dog-eat-dog world of graphics will keep Intel away from the low end of the graphics market. S3 has managed to show strong profit growth in this environment and will continue to do so--but mine and other nay sayers' postings has put the fear of Intel in the minds of investors. I will explain why the fear of Intel is unfounded, and hope to convince everyone to love Intel.
We all know that Intel got the freebee design of the 2D graphics accelerator from CHPS. CHPS design is PCI based and if Intel puts the graphics accelerator inside the PCI/ISA chip set, there is no money to be made--chip sets are the lowest margin products, which compete with the dog-eat-dog world of chipset manufacturers with the likes of OPTI, VLSI, ets. The packaging is also an issue, once you get to high-pin-count BGA's the cost of packing is also rediculously high. If intel puts the CHIPs PCI graphics accelerator in the processor, it will require them to incoproate the North bridge in the Microprocessor. The north bridge ontop of the graphics accelerator will increase the die size by an order of >300x300 mills on a .35um process and therefore will put the overal Intel's capacity into a crunch. Now remains the issue of the RAMDAC, which the analog back end of the graphics accelerator--Intel has no analog experience. They will require an external DAC, which in most cases is the same price of a cheap 2D accelerator with integrated DAC. The only remaining alternative for intel is to top the world of graphics market by making a very high-end stand alone accelerator that they can sell for $500 a pop. It will be 133mhz AGP 2D/3D, with an external DAC from some body else.
Intel's $500 AGP 2D/3D graphics accelerator will occupy the extremely high end market. Intel will be able to compete effectively with the high-margin world of 3Dlabs.
For those none-technical folks, listen, S3 is in bed with Intel.
Do I have enough evidence to prove OJ is guilty?
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