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

To: Michael who wrote (7855)	11/13/1997 2:30:00 PM
From: Sep K.	Read Replies (2) \| Respond to of 14577

S3 is in trouble. Employee moral is super low. New engineers don't want to be employed by them, and their management's are arguing. At the same time their products are not selling as well as they should be. They have half a dozen lawsuits against them, which they have basically lost already, since they admitted their guilt. Their P/E is too high, when you consider the new numbers they are going to release. This means the stock belongs at around $3. Why would you even want to purchase S3? Specially, when you know you will have to wait four to five years until they recover from being negative in $$$..

To: Michael who wrote (7855)	11/14/1997 9:03:00 PM
From: steve goldman	Read Replies (2) \| Respond to of 14577

Michael...I think you have a few things wrong. 1st, you have absolutely no idea of book value since they are restating financials. You have no idea how it will impact the balance sheet, inventory, etc. Also, you have to bring down the numbers for good will. .50 cents above bookvalue? What are you thinking about. YOu have no idea what book value is because they dont have accurate books. They also dont know how bad the restatemetns will be , 14 to 29 cents, quite a range. 2nd. A stock is only worth what others are will to pay for it . Perception. There are literally hundreds of stocks trading at discounts to certain multiples etc. without such restatements hanging over their heads. This stock will not be on analysts radars for quite a while. 3rd. You will never miss out on it. If the stock is good for 6 1/2 its good at 7. If its not good at 7, you dont want it anyway at 6 1/2. Its not running anywhere. It trades everyday, all day and you can always get all that you want. Why dont you consider writing a call to participate in any upside move but WAIT for the restatement. The company has not said how bad things will be and you are making an assumption that they will make a few chop chops and be done. YOu have no idea they dont find some criminal liability and find the inaccuracies more widespread. I am in no way saying that you should think the worst, but why give them any benefit of the doubt. They have not deserved it to date. In fact, I think you are being imprudent in not waiting. I believe you said you owned some already. As well, you are trading the most ugly stock going lately for 1/4 points. Becareful. You have limited upsdie and lots of downside possible. (6 points max). Resignation of GJ would be positive, I believe, resturction, no way, bad news. good luck, but look at other companies. Stop fixating on this thing. There are lots of other 7 or 14 (1/2 the quantity thought) stocks that have better upside. I had atlleast 6, 10 to 18 dollar stocks up 1 or more points today. Average in and make you lost money back with some other stock. Regards, Steve@yamner.com