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

To: Bill Lin who wrote (7513)	11/6/1997 6:26:00 PM
From: Jan A. Van Hummel	Read Replies (3) \| Respond to of 14577

Bill, If S3 hits 4 and sells at a discount from its book value, there will be more strong hands that want to hold stock than there is stock to spread around. S3 would have to anticipate a loss of $2-3/share over the next 12 months to justify a share price of $4. Many do not seem to realize that while the book value may be just over $5/share the replacement cost will be well above that level. If you want to get into this business, have the market presence of a S3 and the human and financial resources of a S3 plus the infrastructure and the fab capacity and just a few more things, there is no way that one can accomplish this instantaneously for anything close to book value. It is my firm believe that if the BOD and management are not soon going to address the current problems in a positive and constructive way, S3's days as an independent company will be numbered. It is just too attractive to just let it sit there whithering away. Today, you can own the company for $350 million and change. If it trades at $4 for $200 and change. To essentially control the company you need substantially less. Where in the hi-tech sector can you buy for this little money a business that has the largest market share in its industry and can make you a fortune with a little better management? Besides, the industry will continue to enjoy double-digit growth the next several years. I simply don't buy the dark forecasts we have seen recently. Sure, I am extremely disappointed with what has transpired in recent weeks, but to start make funeral arrangements for S3's early demise is premature and ill-advised at best and stupid at worst. If GJ and his team won't do it, someone else will. JMHO Jan A. Van Hummel