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

To: Ski who wrote (7459)	11/5/1997 10:37:00 PM
From: Chris Tomas	Read Replies (1) \| Respond to of 14577

I just hit the "NEXT" button Ski. Some of the posts here recently just make you roll your eyes. Did I just catch a glimpse of S3 and pink sheets in the same sentence. Give me a f##%@#*%%^ break. Oh well, how's it going at ATI? I'm sure you guys are really learning a lesson at S3's expense. I just gotta wonder what you guys are working on w/ all this talk of GX3 and Vortex. Good luck.

To: Ski who wrote (7459)	11/5/1997 10:37:00 PM
From: Leman	Respond to of 14577

If you guys want a good component stock buy AESP a good tool stock QEPC and make money

To: Ski who wrote (7459)	11/5/1997 11:07:00 PM
From: Tom Terf	Read Replies (1) \| Respond to of 14577

I don't have specific inside contact within S3 who is providing this data. I am using my knowledge of what happened later after the initial sugar-coated announcement -- in similar instances. It all doesn't come out the first time ! There is a lot we don't know. I have also worked in similar Companies to S3 -- like their predecessor Chips & Technologies - and can appreciate the pressure people are under to "make the numbers," sometimes at any cost, as is the case in this present situation. We all, of course, are interested in the stock price. The stock price, will be heavily influenced by the way this financial / legal aspect is resolved. It will not go away. It gets worse from here, not better. Don't let yourself get blinded by the technology and the stuff they actually sell. This is now a legal issue... and my point is that the stock price will immediatelty start reflecting the big risks and uncertainties which are now inherent in addressing it from this aspect. I apologize if I start to sound like Alan Greenspan, but you really have to look at cash available and put some value on their fab investments as principal assets. This will put a floor on how low the stock can go. I'd say it's about $ 3 1/2 under the worst case scenario. Most of the A/R is questionable at this point, because we do not know how much of this will ever be paid -- as this revennue likely went out as consignment sales to the Far East Distributors. This is the big no-no. My guess is that the Asia distributors were severely pressured to take this stuff well before they needed to have it. They were given exceptionally long payment terms, possibly 90 days. That is why A/R shot up 35 % with flat sales. Now, instead of paying, they will likely re-negotiate a lower price or send the stuff back. They know they have S3 by the short haris and they'll squeeze out any financial advantage they can for themselves. These returns will be negative Q4 sales, not the sell through the Company is anticipating. The Company will face further writeoffs, etc., since you can't ship the product in June and have it return in January at the same price basis it went out in this fast changing marketplace.. You've got to understand how the system works and how it can unravel .. which it did here.