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

To: Michael who wrote (7993)	11/19/1997 11:35:00 AM
From: John Nasser	Read Replies (1) \| Respond to of 14577

Michael: I just found this lil' article too. Altough it may be old. The following is out of an PC MAG article I believe? Better TV than Ever Dept.: Finally, after years and years, it seems that people are seriously using their computers as functional TV sets, utilizing the various TV tuner/cards on the market. In fact, ATi has added a tuner to one of its display cards. But most TV pictures do not take full advantage of the high resolution of the monitors. Enter Yves Faroudja, the genius behind a variety of video inventions. A few years ago he showed the National Association of Broadcasters something called Super NTSC, a cheap modification that did line doubling and improved the NTSC signal to the point where it mimicked analog HDTV. This was during the peak of the HDTV hype. But none of this went anywhere, and Faroudja was content to license Hi-8 and 6-mm digital camcorder circuits to the likes of Sony. Well, I still remember seeing what this circuit accomplished, and I've never forgotten it. It's stunning. So, finally, Faroudja licenses the design to S3 so it can be used on progressive-scan monitors. Expect to see some incredibly sharp TV on your computer soon! We should see some sort of product by the first quarter of 1998. But let me tell you, a smart cookie could do worse than grab the eventual S3 chip and make a box for regular TVs.

To: Michael who wrote (7993)	11/23/1997 9:36:00 PM
From: stockroach	Read Replies (1) \| Respond to of 14577

Michael, I agree that Faroudja, the fab and that S3 has cash are positives for S3. What concerns me about the company is: Cash - how long will it last? Even if S3 wins the law suits they will pay millions in lawyer fees. Secondly, they have little new product to offer the market. Per the conferance call asia is saturated with S3 low end products so where will revenue come from for the next 3 quarters. Cash will be burned. The Fab - Well with the current state of the far east, I would not be supprised if the fab value went down. Guestimates on the thread have it from $400 million to 800 million. With Hong Kong, Japan banks, South Korea needing our help this does not help asian companies trying to go public in the next 12 months. Faroudja - I saw a demo at Comdex of the S3 product and the ATI Product running. When there was little motion on the screen ( like 2 people just standing and talking) there is no difference that I could tell between the 2 products. ATI was running a Jackie Chan movie and when there was alot of action the picture became fuzzie at times. I could see this and I dont consider myself to be an expert. The problem with S3 is that as of today they have vaporware. They need to get the product to market When will this happen, who knows. When they do get the product to market will there be enough difference in performance to justify a higher price vs. the software based product. Another problem with S3 is Gary Johnson - enough said. I would not be buying at these levels now,if S3 gets it's ship in order there will be plenty of time to get on this train. If you own the stock hold to see what happens, but don't think that all the bad news is out, you never know with this market or this stock. QUESTION - The average price of PC's sold at the beginning of 97 was say $2200 lets say. Now as we close the year you are seeing the hot spot at $1499 and a average a little higher. 1998 the sub $1,000 market is projected to be 20%. The average price of a PC for 98 is going to come down dramatically. If the PC market grows 15-18% how are the box makers going to show a increase in revenue in 98. I think it could be a tough year for all tech. Stocks. Comments please. Stockroach