S3 (Multimedia semi's place 2be) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : S3 (Multimedia semi's place 2be)

SIII 0.0001000

0.0%

May 12 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Keith Dykstra who wrote (8274)	3/14/1997 4:22:00 PM
From: stockroach	of 9477

Sometimes you just have to say What The F^#*. Go out have some ( alot ) green beers, Me I got a BIG rum and coke going. OK - S3 - stands for suddenly shitty stock or stock sliding south. Now for the good news. Compaq has just released the 2 newest Presarios and both have S3 on board. We should see announcement soon. Announcement on AGP coming this month, so I am told. Paine Webber Research by John Lazlo: Here is highlights. Dated March 6th. Recent conversation with S3 management. 1) "On track to meet our estimates of $139M Rev. & .30 / share vs. 110M and .25. Sales strong, S3 remaines the undisputed market leader in 2D & 3D". 2) Intel - is currently developing a 3D graphics chip code name Auburn. " We understand that the completion of the design has been delayed from the original target of July 97. We now expect the chip to be released in September, suggesting that production quantities will not be available until sometime in 98. We also understand that the first edition of Auburn WILL NOT OFFER SIGNIFICNT PERFORMANCE ENHANCEMENTS OVER THE SECOND GENERATION VIRGE.Moreover the Auburn solution will be expensive and will not be able to compete with S3 Virge $25 motherboard solution.Intel does have a second chip in developement, but will not be available until sometime in 98". 3)" The stock has come under presure in recent weeks for no particular reason. Although there has been MODEST insider selling and the resignation of the CFO George Hervey was unexpected, the fundamentals of the company remain solid. We are not aware of any analyst reducing estimates or downgrading the stock. Moreover, now that the expectations for Auburn have been stretched back to 98 and no other competitive entrants will appear to have significant volumes ready in time for the Christmas selling season, it would appear that S3 near term competitive position has IMPROVED". 4) "We reiterate our buy (1) rating. The stock is cheap as it is currently trading at 12x our 97 EPS estimate of $1.35 and 10x our 98 EPS of $1.70. Our price target of $34 assumes a historic 20 P/E times our 98 EPS projection". Lowlights -" Risk include a slowdown in PC unit demand and inceased competition". Read at your own risk. My spelling might be off - Damn that Rum has some punch. Grogg

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next