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

To: Ram Seetharaman who wrote (13889)	12/27/1999 3:19:00 PM
From: Bill Lin	Read Replies (1) \| Respond to of 14577

It depends. Will the $13.5 act as a top barrier or a bottom floor? Given $140mm, can S3 leverage top line growth to exceed 35% per year? Can S3 remake itself into communications and networking? The revenue growth from Via will not be viewed positively by the markets, UNLESS Via forecasts chipset sales growth in the order of 35%-50% year over year because of the new designs. Thats sales, not units. Remember it is a low margin business dominated by Intel. Also there is worry that S3-Via deal will piss off Intel, who has $10 BILLION to compete with $140 million. (ok over dramatic, but probably $500 million allocated to graphics chipsets.) I see $9-$13 for next quarter as market waits to see if S3 can perform. BL