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

To: Michael who wrote (7789)	11/12/1997 11:42:00 AM
From: Tom Terf	Respond to of 14577

You are right.. there is a major product writeoff/ writedown coming along with management changes. Maybe we'll even get our 5 th S3 CFO in 4 years. Now that's a record we can all be proud to share. This is next major event. Heck, we'll have another 4 - 6 firms suing these guys and we'll end with 8 or 9 total when we are done. It will take an awful lot of time to fill out forms for all these people. The hell with the lawyers. Hey, do you know what they call 9 law firms at the bottom of the ocean ? The answer in my next post.

To: Michael who wrote (7789)	11/12/1997 11:50:00 AM
From: bob yahnke	Read Replies (1) \| Respond to of 14577

Michael, is it factored into the price of the stock? No, I don't think so along with other surprises yet to come. It will get worse before it gets better. Not to mention the tax loss selling yet to come.

To: Michael who wrote (7789)	11/12/1997 12:06:00 PM
From: Ken Muller	Respond to of 14577

Michael: <<Your question on whether the stock price reflects an inventory write down>> There will be a write down. No one knows ,now, how much it will be. There was between $40-$70 million in additional inventory which was loaded into the disty channels.The write down will depend on how fast the market pricing on this material eroded or what price the material was actually sold at. Since there was also previous material in inventory, that will also have to be factored in. It has been my experience that companies usually write down everything they can at one time to get the bad news out of the way. This gives them a fresh start. There is one insidious problem still lurking out there. The improper accounting has hidden the actual revenue numbers. We also don't know if their order backlog was legitimate. We have no idea what revenue S3 is actually generating today. We may not know until after 4th quarter results are in. Lots and lots of unknowns. Ken