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

To: Parker Benchley who wrote (7484)	11/6/1997 1:03:00 PM
From: Mark Zavist	Read Replies (3) \| Respond to of 14577

George, Important information, such as, will S3 be demonstating the GX3 chipset and the Faroudja reference board at Comdex. This is what we need to know. It's alittle funny how it was claimed by Guppy and others that S3 had the GX3 silicon in hand, but no one knew that S3 was already sampling the new Trio 3D chip. S3 in a number of press releases stated that they would be sampling the Faroudja reference board for OEM's and add-in card makers by third quarter. Does anyone know if this is true. Suprises, both good and bad seem to be around every corner. Mark Z.

To: Parker Benchley who wrote (7484)	11/6/1997 1:11:00 PM
From: Tom Terf	Read Replies (3) \| Respond to of 14577

Again, I am NOT short. I am planning to short above 8. This is the entry point in establishing a base short position. I hope to recover 70 - 80 % of losses through the short. The stock will trade 6 1/2 - 8 until some further news comes out. The news will likely be worst rather than better... so the lower end of the trading range will be breeched at this time. They are putting too optimistic spin on this. They will reach the higher end of the revenue re- timing range - $ 70M. The EPS reduction will greatly exceed $ 0.29 because they have to reduce pricing by about 25 % to keep the stuff out there. So we are looking at a $ 0.50 to 0.60 reduction. This wipes out most of the earnings the past three quarters. So the year is a complete washout. So much for the low P/E all the bulls are raving about ! Also, if they get mired in lawsuits from the shareholders and SEC people, then they will incurr about $ 2-3M in both legal and accounting/audit bills during the next 6 months. This will put the company off limits in a takeover move since no one will move on them with all the legal stuff up in the air for many months or possibly years ! Unless SIII price breaks down to 3 level, or course. Further, look for tax loss selling as well to hold this dog down under 8 for the remainder of the year. Stop excusing this poor management. There is little hope. The technology and market demands are moving past them. That is the primary reason for their demise. They were just trying to hold out and fool the investors as they cashed out their stock. It happens all the time. S3's time is up.