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

To: stockroach who wrote (8116)	11/26/1997 7:55:00 PM
From: Jan A. Van Hummel	Respond to of 14577

You are probably right that there will be very little market (analyst) following until S3 gets back on the right track and will show the earnings growth to go with it. Nonetheless, it is likely you will see the stock eventually improve before the supporting news will come out. If indeed the GX3 falls into the third quarter we may have to wait till October, but don't forget, it doesnot take much to run up fast. I did buy some more today and may even add a little more should the stock dip under $6 because I am quite prepared to wait it out. If anything, it improved my average cost a bit. Did you notice today in the WSJ? Between 10/15 and 11/14 the short position in S3 went from 4,108,038 to 3,372,416. Frankly, I would have expected a larger decline, because if would have given an opportunity to invest it elsewhere earlier for potentially a bigger return, but then, I guess the short players play only the short game. Jan

To: stockroach who wrote (8116)	11/27/1997 2:30:00 AM
From: SidStock	Read Replies (1) \| Respond to of 14577

Toshiba's notebooks dont appear to be selling well (the lone S3 MX design win). -Sid Toshiba Unit To Stop Selling Infinia PC ... The publication said the company, a unit of Toshiba, cited a "dramatically changed" market, especially with the predominance of PCs priced below $1,000, in explaining the move. The publication added that market analysts said several critical miscalculations and a disturbing drop in market share for Toshiba's core notebook-computer products made Infinia's demise inevitable. yahoo.com

To: stockroach who wrote (8116)	11/28/1997 1:25:00 PM
From: Allen Furlan	Respond to of 14577

Sorry this was meant for Jan and dont know how to edit adressee. Thank you for the reply, I will go back further in thread to review opinions of technically oriented posters. It was Eric Thew who was considering buying calls and my response to him was similar to yours, ie, calls are not the best play now. Consider the following 2 strategies 1) sell July 5 puts for 7/8 or 2) buy stock at 6 3/8 and sell 2 July 10 calls at 3/4. Since your original margin is only 10% and you can write 10 puts for the price of buying 100 shares and expect an annualized return of approx 200 % for strategy 1, if stock stays above 5. Two caveats with such a highly leveraged position, expect to own stock at acquisition price of 4 1/8 net and be prepared to increase margin set aside if stock declines. Strategy 2 breaks even if stock at 5 in July and has possibility of 170% max annualized return if stock climbs and holds at 10. However my expectation is that stock will gradually rise and that I will have to buy back naked calls over time. Of course there is risk of a whipsaw. If you can identify beaten down stocks you wish to own and repeat this strategy over time you will be able to use leverage and diversify as well. I am now studying mrii to see if I will do a ratio write for this issue.