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

To: Jan A. Van Hummel who wrote (8312)	12/12/1997 5:34:00 PM
From: Kenneth Yeh	Read Replies (1) \| Respond to of 14577

Jan, I agree..most of the high techs are getting battered this week. However, if you look at the high techs a little more closely, you'll notice that nearly ever sector has recovered to some degree EXCEPT semi-conductor stocks. AMAT, KLAC, KLIC, LRCX, ATMI, AMD, IPEC, LSI, INTC and any other big semi-conductor company have not shown signs of life since that big crash in October. Look at their charts and calculate the percentage drops they have taken since that terrible monday. Investors and analysts keep arguing that "It can't get any lower than this! Buy it now!" but it always seems to go lower and lower. What of the little guys? Let's take a look at CRUS, OAKT, ALSC, TRID, NINE, LUMI, HMTT, TLCM, MTSN, TLCM, and especially SIII...these guys have fallen and can't seem to get up. Believe it or not, I like every one of the stocks I mentioned and I think in the long term, they are great buys. However, I'm staying away from all semi-conductor stocks until things stabilize. Of all the stocks I've mentioned, I feel S3 has by far the highest risk potential. The lawsuit will always linger in the minds of potential investors and mitigate any upside move in the stock price. The increased competition, lower profit margins, stock dilution, and lack of a new "winning" product may hurt S3's earnings this quarter. So to answer your question Jan, yes, I do like S3 as a long term investment but I'm not eager to jump in at this point. Waiting and watching to see what news develops. Maybe S3 will be $2-$3 by that time...maybe it will be $10 or $15. I made a huge mistake buying S3 a few months back at $13, but thankfully, I sold all of it at $10 after their earnings report. The key is knowning when to get out even if it means taking a loss. My investing philosophy has always been: "Trade on momentum, don't try and bottom pick." So far, its done me pretty good. Good luck in your investments. -Ken