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

To: James Luk who wrote (8700)	1/7/1998 4:39:00 AM
From: Steve E. Boney	Respond to of 14577

TDFX has Voodoo and Voodoo 2 is even better. Production can hardly meet demands. Why not buy them vs CRUS or other?

To: James Luk who wrote (8700)	1/7/1998 7:54:00 AM
From: steve goldman	Respond to of 14577

$7 would be nice, but pushing it I think. Afterall, this wasn't new news, the value of the position. That they sold, that's positive. That they have cash now to fund operations, good stuff. But I also recall many saying that the value of the fab plants was 12, 13 bucks per S3 share. Clearly its not. Its about 4 or 5. Also remember that having cash doesn't mean you can be a productive or profitable company. Sometimes it means you only burn through the cash. This has a nice effect on the balance sheet and if used properly and all the ducks get in a row, it could be good. Remember apple, how they burned through $8 per share and now, finally, after 7 quarters might show a profit? Just be careful...don't read too much into this news which was already known. Regards, Steve

To: James Luk who wrote (8700)	1/7/1998 8:45:00 AM
From: JAG	Respond to of 14577

you mean they will have $3.31 per share in cash after they receive fab proceeds (not counting any future liquidity event payment to be received) and the stock price is about 5 1/2 and book value was about $6 before profit from fab sale. This is one of the most interesting investments that I have ever laid eyes on. What a way to respon to the attorney suits. Sell 1/3 of fab, raise cash, announce you made a smart investment for stockholders that paid 3x orignial investment. The Company's take on use of money was interesting. I think they will buy small graphics company (if someone does not buy S3 first) for technology and then ramp up the production of the new graphics chip. S3 has the OEM relationships and marketing muscle. My prediction stock price $10 within 6 months.