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

To: Parker Benchley who wrote (7824)	11/12/1997 11:04:00 PM
From: Jan A. Van Hummel	Read Replies (1) \| Respond to of 14577

George, S3's problems are compounded by the malaise in the market in general and the hi-tech market in particular. I have 10 stocks of which 3 highly speculative (includes S3) and follow some 50 other stocks. Today they were all down. Some of the biggies really got hit (TI, Dell, Sun). If this sentiment continues to prevail, it will retard the recovery of S3, regardless of what the current audit will uncover and regardless of what remedial action the Board and/or management will undertake. However, I don't see any development as too little too late. At current levels not only S3 but many other hi-tech companies will become rather attractive targets unless you believe that the global PC market and development will go down the drain. I don't foresee such a development at this time. E.g., if you consider that Intel offered some $375 million for CHIPS, while at today's price the "market leader" could be had for quite a bit less. Despite the turmoil in the Asian markets and therefore the global markets there will be enough capital out there to pluck some of these gems, but the timing may not be right yet. If the market is such that it is all going to pot, S3 will be the last and the least of your and my problems. I refuse to believe that S3 will disappear in oblivion just like that, and even if that happens it is not the end of life as we know it, although I would hate having to take the hit. Have been there, have done it........ The task at hand is to seek changes in this Board of cronies and management. While the founders may still feel a great attachment to S3, the majority of the stock is held by others and they are now the caretakers of S3 for the entire group of shareholders. It seems there is a dereliction of this fiduciary duty, and perhaps even something more serious. If S3 is to get back on track, it will have to make some of these changes soon, and the changes on the Board effective the next Annual Meeting. After the audited report concerning the figures to be restated has been published it may be a lot clearer what approach needs to be taken. As you say - onward. Jan