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

To: Herc who wrote (13944)	1/6/2000 1:18:00 PM
From: Bill Lin	Read Replies (2) \| Respond to of 14577

Geez, lets do a bit of math here: 252 million shares * $3.75 = $945 mm 252 million shares * $3.17 = $800 mm So S3 is recognizing the value based upon a lower price than actually exists in the Taiwan market. 88.5 million shares S3 (outstanding after total dilution) makes this balance sheet recognition equivalent to a $9/share increase in book value However they will recognize $500 mm after tax on the balance sheet, so book value only increases $5.64/share. Cash from financing will be increasing because of Via shares purchase at $13.50 each. Compare cash of Nvidia, ATI, TDFX, Matrox vs S3, and you find that S3 has the BIGGEST cash balance. And you know, this is not even that important. Balance sheet recognition of hidden assets was a tax consideration because of the monetizaton of their investment (UMC taking USC public). It was a forced event. MORE Important is S3's continued movements to diversify into TELECOMM, WIRELESS (i know-a part of telecomm, but my contention is higher valuation potential), chipset, and MP3 property. ALL are higher growth, and higher potential markets than mere graphics chips. Like I contend, we will not be sweating 1,2,3 point moves in a year, because we will be up to $50 levels. That will give S3 a $4.5 to $5.5 billion market cap. certainly achievable. BL