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

To: bob yahnke who wrote (8721)	1/7/1998 7:57:00 PM
From: Kenneth Yeh	Read Replies (1) \| Respond to of 14577

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.'' ----- The sale of 1/3 of holdings in USC affects S3's earnings by -$0.34 a share?? S3 still own 15.5% of USC. So in essence, H&Q is saying that 8.25% of USC will contribute $0.34 a share for FY98? Obviously, H&Q doesn't believe S3's sale of USC was a wise move. Hmm..H&Q slashed S3's earnings by nearly 70% because they sold approx. 8% ownership in USC. For some reason, that just doesn't sound quite right. -Ken