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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: Chris Tomas who wrote (13101)	6/14/1999 5:21:00 PM
From: John Nasser	Respond to of 14577

What good are stakes in companies if you can't put a value on them? That's been the story for more than three years with S3 (SIII:Nasdaq) and Alliance Semiconductor (ALSC:Nasdaq), which partnered with Taiwan's United Microelectronics to create United Semiconductor, a separate Taiwanese company that builds and manages a semiconductor fab in Taiwan. The deal gave S3 and Alliance stakes in United Semi of 15.8% and 15.5%, respectively. To investors, it was little more than a wild card. Today that wild card was revealed when United Micro announced that it was acquiring the outstanding shares of several fabs, including United Semi. (No valuation was given for the deal.) Using United Micro's stock as a guide, several money managers who have done the math believe S3 and Alliance are currently trading for less than the cash on their books combined with their stake in United Semi. Officials of S3 and Alliance couldn't be reached, but here's how some investors, who have good credibility with this column and who are long either one or both of the stocks, broke it down: For Alliance,....... (cut to make this fit) I copied and pasted the STREET.COM article from Yahoo's thread: S3, meanwhile, currently trades at 7 7/8. A money manager long S3 puts the value of its United Semi stock at between $6.50 and $8. The company has another $2 in net cash. "So, basically, the stock is trading below the net value of its cash and securities and what they're supposed to earn this year," the S3 investor says. Consider that, according to these money managers, value unlocked.