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

To: Mike Learner who wrote (8760)	1/12/1998 8:55:00 AM
From: JAG	Read Replies (2) \| Respond to of 14577

Mike, I think you are right on in your assessment of the situation. S3 has plenty of cash. Selling and raising more cash and establising market value for fab would only make them a more likely acquistion target. Managements do not like to be acquired. I think the main reason to sell the 1/3 interest was to close an acquistion. I do not buy managements smoke screen that the money was going to be used in a thousand different ways. As I have said before, S3 has the OEM contacts, the marketing muscle, the fab capacity, and the cash/financing to ramp up a hot new 3D chip. There are a number of small companies with hot graphics chips. Number Nine has an award winning chip and is a small company with losses and weaker balance sheet. Other targets have been mentioned as well. I'm not sure who it will be, but I think it will happen fast.