Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Allen Furlan who wrote (8114)	11/26/1997 5:48:00 PM
From: Jan A. Van Hummel	Read Replies (2) \| Respond to of 14577

Allen, There were some participants in the past who understood well the business S3 is in and have elaborated on S3's products. E.g., look for posts by Bill Lin, Ski and a few others. At the current time S3 has no blockbuster product but the GX3 promises to be one, but that won't be on the market until the beginning of next year. If indeed that proves to be correct in won't be visible in the earnings until the second quarter of 1998 or late July reporting. In between don't expect a great deal to happen. There are some other promising products but difficult to put a handle on how and when these will have a positive bearing on S3's stock performance. The current anemic condition of S3 is due to the absence of a major product, a compounded with the emotial reaction of the market to the restatement, which came at the worst possible time. At $6 and change a share I don't think buying calls really does any good. Unless there is some takeover effort or other event external to S3, we will likely see the stock around these levels for some time. So any premium you pay would be a waste. Buying the stock at current levels is almost like an option without an expiration date. S3 will recover, surely by mid 1998 or maybe even earlier. One thing is sure, by the time that it is evident that S3 has turned the corner it won't be trading at 6-3/8 any more. Also, consider this. If you are satisfied with a 30 - 40 % return on your investment over the next 12 months then S3 needs to trade between $8.25 and $9 between now and Thanksgiving 1998. IMO chances are substantially better than 50 % that it will. Don't expect the instant gratification, the quick big return as it won't likely happen even though it could. Also, don't look at what your average cost may be on what you own already, just look at the return on the next dollar you are going to invest. Granted, with the recent downturn there are quite some more stocks out there offering similar or better potential returns, but that is up to each one individually. JMHO Jan