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

To: SidStock who wrote (6920)	10/27/1997 9:50:00 PM
From: wfrazee	Respond to of 14577

While everyone is licking their wounds today, I think this is a great buying opportunity. It's Christmas shopping in October! Time to restock the portfolio.

To: SidStock who wrote (6920)	10/27/1997 11:27:00 PM
From: Ski	Respond to of 14577

Well, that Oatmeal Stout made me mellow enough to read the latest Oppenheimer & Co. report dated October 1997 and titled: "A New Dimension In Computing: The 3D Graphics Market, Industry Analysis & White Paper." This report was done with John Peddie Associates. I gotta admit, the fact base of this report does not suck. It is a good overview of the 3D graphics market to date and provides reasonable projections of market volume and dynamics into the future. You graphics aficianados may know a lot of this stuff, but for most on this thread, I'd recommend it as a very good summary of the PC graphics market, though I reserve the right to take some exception with a few of the ideas contained therein. The report builds a good case for stating that 3Dness will drive the PC graphics market for the foreseeable future. The report only devotes a page (pg. 3) to the market plays coming out of this overpowering trend to 3Dness. Their top overall pick is 3D Labs, with 2nd and 3rd going to STBI and DIMD, respectively. That was it for the recommendations. Only S3 was singled out for an anti-recommendation (for lack of a better term). ATI was ignored in this section altogether. For the record, the paragraph on S3 was as follows: "We would avoid S3 shares until the company provides the Street with more visibility on its performance 3D product cycle. S3's current high-end product has had very limited success given its relatively poor 3D performance. We believe the delay of the company's performance 3D chip from early 1998 to late 1998 will give performance 3D competitors an opportunity to displace the company's chips in key accounts. Furthermore, with Intel's Auburn chip expected to target the more price-sensitive consumer market and the likelihood that other 3D performance competitors will reduce pricing in early 1998, market share losses are possible for S3 in the first and second quarters of 1998." To be clear, the reference stock price at the back of the report for S3 was 12-1/8. Given the 8.5 close today, I gotta believe they'd be more willing to take the risk given the upside. So, take the Oppy/JPA comments on S3 with a big grain of salt. Maybe one of you moguls could ask Oppy if they still feel so strongly. (Ski Note: remember when Intel positioned their graphics effort at the high end? A long time ago. Monopolistic liars.) Nuts, I just saw Green Bay march 99 yards against the Pats. Sigh... Stock Talk, you better short the Pats. How depressing. I got this report from Oppenheimer based on some article previously posted on this thread, I think. The report has the number 97A-190 on it and the Oppy phone numbers on the cover are 212-667-7000 and 800-999-6726. For you close followers of the graphics markets, I'd recommend getting this Oppy/JPA report. Ski