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

To: James T. who wrote (7325)	11/4/1997 4:05:00 PM
From: Tom Terf	Read Replies (1) \| Respond to of 14577

To James T. The share price will continue to fall because no one really knows what the heck is going on. Do you really trust management ? Are they telling the truth ? If you buy this stock you are making wild-ass bet that this was honest mistake and the results will come back this quarter. That won't happen. Don't be so naive, young man. There is far more to this than we know or may ever know. What is needed is a full blown investigation. However, if its by the government it may take 4 years or more. That's the problem.

To: James T. who wrote (7325)	11/4/1997 10:08:00 PM
From: Sep K.	Read Replies (1) \| Respond to of 14577

James, think about it. The investors consider a P/E of 18 (when it was $8 3/4) as a fair for this stock with its current end of the year EPS; this year end EPS was expected to be .48 (sum of last three and next quarter) by FIRST CALL. Since the .48 is going to be changed to .29, then the P/E at $7 is almost 25. Of course the stock will drift down to a P/E that is considered as appropriate, which was 18, but will probably become 10. SO, THIS MEANS THAT FOR A P/E OF 10 THE STOCK WILL NEED TO BE AT ABOUT $3. So expect the stock price to drift down towards $3.