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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 (8709)	1/7/1998 11:31:00 AM
From: Michael	Respond to of 14577

Another thing to note on the Fab is that S3 sold only a small portion of the Fab capacity (33% of their share and they only owned 24%). If they had sold the whole thing, a bigger premium would have been paid.

To: Jan A. Van Hummel who wrote (8709)	1/7/1998 12:50:00 PM
From: Cosmo Kramer	Respond to of 14577

Wednesday January 7, 11:40 am Eastern Time RESEARCH ALERT - S3 Inc estimate cut LOS ANGELES, Jan. 7 (Reuters) - Hambrecht & Quist LLC cut its earnings estimate for S3 Inc following the company's sale of a large stake in a joint venture foundry for making semiconductors, called USC. -- in a statement issued late on Tuesday, cut 1998 earnings estimate to $0.20 a share from $0.54 based on a smaller contribution from USC. -- maintained a hold rating ''due to a weak earnings outlook for the majority of 1998.''

To: Jan A. Van Hummel who wrote (8709)	1/7/1998 1:01:00 PM
From: stockroach	Respond to of 14577

Jan, S3 is hardly a market leader. They missed on AGP and 2 design cycles. They are strickly low end for desktop and I doubt they are shipping the volume of product they use to. This does not make a market leader. On the positive side I think Terry and Walt are making some good moves to get this company turned around, but it won't happen overnight. IMHO I think all semi's and tech stocks are going to have a tough 6 months. PC prices are coming down fast. How are these PC companies going to make up the lost revenue. Even if sales growth is 18% the average price of a PC has come down $500 - $800 in a year. PC companies will put more pressure on their vendors, Intel included. Hopefully the market will recover just when S3 is releasing their new products for production. Should be interesting. stockroach