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

To: Jonathan Rothschild who wrote (7659)	11/10/1997 9:03:00 AM
From: Leo Francis	Read Replies (3) \| Respond to of 14577

Jonathan, insider selling and profiting, is just one small aspect of the class action. A restatement of earnings and revenues is a major occurance, especially with the MAGNITUDE of the restatement. (40-70 million over 3 Q's, represents about 20%) And guess what? We have not seen the final restatement yet. It could be even more. S3 will settle. By vigorously defending the class action will cost them even more, as they will be diverted from the necessary task at hand, to rebuild this company. S3 will settle. Good Trading, LF

To: Jonathan Rothschild who wrote (7659)	11/10/1997 12:23:00 PM
From: wudI	Read Replies (1) \| Respond to of 14577

-----Attorneys will have a hard time developing their burden of proof to hurt the company. SIII's restatement of earnings was hardly "unprecedented" and is not uncommon in the industry Jonathan: I thought the underlying issue was that S3 had recognized income when product was shipped to third party value-adders, in effect, consignees. If my understanding is right, then it would seem that the issue is really one of overstated revenues - something both management and the company's accountants should be concerned with - and any retained earnings resulting from that pattern of overstatement would be fictitious. Regards, wudI