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

To: Sam Gompers who wrote (8361)	12/13/1997 10:06:00 AM
From: stock talk	Read Replies (1) \| Respond to of 14577

Good Morning All, let me first say I think the market pressure is showing up on this thread the current "tone" here. < historical perspective.> Think about those words. < The Dow and the markets in general have a "historical record" and those who fail to appreciate or understand that historical perspective are bound to repeat its mistakes.> We are in the middle of a pretty good tech meltdown, not as bad as I've seen but worse than most. <I guess this is my main concern. If S3 is indeed a leader in the industrty, and if they have the design talent and the products in the works, why is this stock trading lower and lower all the time?> Good question, my only responce is in the absence of any real hard info from management and the presence of uncertainly and rumor, that is a perscription for weakness. Above all the market hates uncertainty ,if S3 would only come clean, the market could then fairly value S3. < I just want to find a balance between the Jan's and the Bob's, who either love this company or think it is going to go belly up in the near future. Can somebody find me a balance and convince those of us who read this thread that there is a good reason to buy at these levels???> I believe I offer a very balanced view, as I have often said in the past, things are never as good as they seem or as bad as it would appear. The market almost always over reacts in both directions. Having said that, I am now left holding 100K worth of S3 stock that is now worth less 55k. What I do know is,(1) this is tax loss selling season, (2)in Nov. 97 S3 admitted a accounting problem,(3)we are in one of the worse tech recks sell offs in recent history, (4)there is a ton of cash on the sidelines waiting to be invested. I will close out my position in this stock, however I'm not stupid, I won't sell into the current weakness. In 1998, if S3 management does not lift the uncertainty, "time" will, tax loss season will be over and the pressure abated, tech will once again come into favor, and the mounting cash on the sidelines will be put work. If the market has nothing else, it has a short memory, all S3 would need to do is deliver and most all would be forgotten. Take a look at CREAF when it was at $4-5-6-7 and what was beening said about it. My point is there will be a better time and price to sell at or if your thinking of buying worst $4 dollar stocks to invest in. I believe S3 will sell at higher levels during 1998 than $4-5 bucks. I hope that presents a balanced view.

To: Sam Gompers who wrote (8361)	12/13/1997 5:29:00 PM
From: Phil Fischer	Read Replies (1) \| Respond to of 14577

While not claiming that Siii has great prospects (I really have no idea), I wouldn't take the low stock price as an indication that the "players" know something that we don't. As an example consider TLC (educational software). This stock drifted down to $5.50 last summer. They made some acquisitions, converted debt into convertible shares and quickly (I felt G-forces) ran up to $20 (now trading 17-19). The point I am trying to make is that often WS writes off a company too quickly. A couple of changes to the business and the stock can be back in favor. If the business is viable and the management has the wherewithall, investor sentiment can be turned around very quickly. I believe the former is true, but the latter may not be. I too would like to see some changes to upper management and a commitment to keeping investors better informed (even if it is bad news). I have decided not to sell for now (can always take the tax loss next year). Phil