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

To: stockroach who wrote (8326)	12/12/1997 4:44:00 PM
From: Jan A. Van Hummel	Read Replies (3) \| Respond to of 14577

Roach, As to the fab. Thre is little information on UMC. TSMC though was trading around NT$156 last August, now it is at NT$ 124 abt a 20 % drop, perhaps a little more in US$ because of currency exchange rate changes. The last August quote represented abt 16 x the original investment. We know that because of the Philips sale. This means that today it is selling at perhaps 10-12 x the original investment. Arguably UMC could be valued in about a similar fashion. At the cost of the original investment the fab already represents $2/share, hence my argument in the earlier post. As to S3, there is little they can do to immediately satisfy the market's expectations regarding new products. It takes time to develop the products, test them and bring them to market. They missed out on a product for the current period and we will have to wait till the next quarter before we will see some movement. By the middle of next year they should be leading the pack again with results to show for it during the second half. There is little we can do about. Moaning and groaning is not getting the products to market faster. We should stop micro analyzing these type of stocks to expect major decisions one day and the results to show for those results the next day. It simply doesn't work that way. Anyhow, that is MHO Jan