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

To: stock talk who wrote (7561)	11/7/1997 3:51:00 PM
From: Tom Terf	Read Replies (1) \| Respond to of 14577

I think you have the story down pretty well. Except that Walt may not have been told everything before he signed up. I think the former CFO was amenable to the loosey goosey mode they seem to have played. After awhile the business did not allow payback of the former quarters "borrowing" It's an old story. They are trying to blame the problem on Asia distributors, but everyone knows you have to watch these guys like hawks or they'll steal you blind. S3 management just took advantage of a very loose market situation. I recall Tawian blow up occured with both Chips and Tech and Opti (both companies are associated with S3) since these guys all worked together in the mid to late at 80's at Chips before they spun off. At Chips, Taiwan business reached almost 70 % of Company sales at one time and was principal driver... So you need some conservative accounting methologies in place or you'll get nailed. Same thing happened to Opti, Oak Tech, Alliance Semi, etc. Let's not be all so naive. While everyone manages the results, you have to be careful that you don't cross the line.

To: stock talk who wrote (7561)	11/7/1997 4:09:00 PM
From: Jan A. Van Hummel	Read Replies (2) \| Respond to of 14577

Frank, You are probably right on your assumptions, especially on your last comment: "it may not really be as big a deal as some on this thread are making it out to be." Maybe management took a chance by not missing the numbers and then announcing the restatement the stock would not get hit that much, and who knows. In my opinion, if you have bad news to give, you give it all at once. Time will tell. Also, there seems to be a perception that the law suit is going to result in some serious money flowing back to the shareholders/investors affected. I have never seen that happen. The only ones making money of it will be the lawyers. Jan A. Van Hummel

To: stock talk who wrote (7561)	11/7/1997 4:58:00 PM
From: Ken Muller	Read Replies (3) \| Respond to of 14577

Frank: I am uneasy about this whole situation. After reflection, its clear to me now that S3 management knew what was happening from day one. Bumping revenue from quarter to quarter is done in various way, I know, but to do so with an accounting change is not allowed unless you note it. They knew what they were doing was not right, but they did it anyway. Since the old CFO left in the 1st quarter, they applied the pressure to the acting CFO in the 2nd quarter. Now, this is why I am uneasy. During the the rapid descent from 16 to 10 the short situation was increasing! (At 10, there was over 4.5 mllion shares short!) Who in their right mind would be shorting at 10? Unless you knew there was a restatement coming with a large reduction in earnings. It is my belief that there was common information out that there was an accounting problem. My God, this thing had gone on for over 6 months! Everyone must have known. While I was busy touting the company's future, I got my money taken like the country rube that I was. Not a nice feeling, knowing that I was conned by the very people I trusted. While I cannot get much solace from a shareholder suit, I can try to make sure that those reponsible get close scrutiny. I intend to file a complaint with the SEC. I would invite others to do the same. IMO, the huge short positions cannot be jusified by anything other than inside information. In any case, to allow a company, any company, to make up numbers as they go along cannot be allowed. Poorer but wiser, Ken