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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 (8483)	12/19/1997 1:44:00 PM
From: mcmiller	Read Replies (1) \| Respond to of 14577

Question on the terms of the law suit. Is it possible we could even owe more money than the firm gets back for us since they take a certain percentage plus expenses? What if they claim to run up millions in expenses?

To: Jan A. Van Hummel who wrote (8483)	12/19/1997 11:03:00 PM
From: Jan A. Van Hummel	Read Replies (1) \| Respond to of 14577

In my previous message read: Diversification was likely needed but the result of the decision made left much to be desired, but Monday quarterbacking is always easy.

To: Jan A. Van Hummel who wrote (8483)	12/22/1997 3:36:00 PM
From: Bill Lin	Respond to of 14577

Jan, Ken, and all just wanted to say, "Happy Holidays!" It was fun (although costly) scrambling for information about S3, and also conversing with you guys. Still long, still haven't sold a share. based upon the TH announcement, i give up on my $4 probability, and move it to $5. $4 still probable if S3 announces no backlog in Q1 report, and a substantial writeoff of "bad debts". (there is a bad debt section in the 10k '96) A way to calculate "enterprise" value is market cap plus debt, minus cash. or $6*52mm shares + $120mm - $100mm = $332 million. or so. As Tseng, and Oak Tech proved in '94/'95/'96 there is no value in being the "low end"/'low price' leader. To support the $332mm value, S3 must: 1) differentiate a US/Asian/European marketing strategy. a) OEM model b) add in card model 2) build a high end graphics chip to support a $225 retail add in card 3) build a mid end graphics chip to support a $150 retail add in card 4) build a low end graphics chip to support a $100 retail add in card 5) maintain Triod 3D performance upgrade to maintain $50 add in card. S3 has depended upon linear improvements of processing speed. With geometry setup engines, bit mapping, etc, processing speed has been improving in a logarithmic scale. This will continue for 3 more years (my guess). To compete in an industry that relies upon technological innovations, S3 must be innovative, acquisitive, and completely dispassionate in evaluating profitable technology. Good luck to you all, and have a SAFE and happy new year! bill