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

To: John Nasser who wrote (13330)	7/13/1999 2:01:00 PM
From: Calvin Scott	Respond to of 14577

I really do not believe Pots would come out and say that S3 would beat estimates and then let the fab investment speak for the revenues. He would be cutting his own throat as well as all the investors not to mention Wall Street. But, if he has based his estimates on the fab investment, his creditability and certainly his leadership will be in question. Also to comment on a few people stating that S3 needs to compete in the high end graphics market let me say this. By all accounts including design wins, their current product offerings are being well received. It certainly would be nice to compete on the high end but it is not necessary. A mid to low end chip represents over 80% of the graphics chip market. They are producing their products using .18 geometry's. For those stating that they are selling at or below cost is just not right. What would be right is that they are selling at margins below their targets. It used to be that anything above 40% is outstanding. Indications now are that anything above 30% is satisfactory. I guess we will all have to wait for the quarter results but I really do not think (hope) Pots would stick his neck out on earnings based heavily on fab investment revenue. Calvin Scott