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

To: Mike Learner who wrote (8930)	1/24/1998 11:42:00 AM
From: Dave O.	Read Replies (1) \| Respond to of 14577

Mike, One big difference between WDC and S3 is that WDC is not restating past results. Quite honestly it wouldn't surprise me to see other DD companies like QNTM, SEG, RDRT and APM get hit with suits. The DD sector had a great run in 1997 but once oversupply and pricing pressures hit it killed the EPS growth that was occurring. For example: Co. - High Low 1/23 SEG - 54 - 18 - 20 QNTM - 43 - 18 - 21 RDRT - 34 - 14 - 14+ APM - 56 - 10 - 11+ Companies like S3, SYBS and IFMX that restate can not be thought of as high quality companies. This kind of "error" just doesn't occur. I lost a lot of money on S3 but I was able to make up a decent amount of that loss in QNTM last year. If the execs at these DD companies sold early (and I saw insider selling in QNTM back in the high 20's; BEFORE it ran past 40) many individual investors were saying how these execs made bid mistakes (selling too early). Anyway, talking about WDC and S3 in the same context is comparing apples to oranges. Dave

To: Mike Learner who wrote (8930)	1/25/1998 12:50:00 PM
From: steve goldman	Respond to of 14577

Hi All! Someone had emailed me that my opinion was being passed back and forth on the thread. Thought I should clarify a few points... Brad, first off, if you think that I am trying to pump and punish the stock by giving my two cents,then you don't know me very well. Currently I don't own the stock long or short. I really don't even look at it anymore. I don't lie and used to give my opinion on the stock because I had been a shareholder, an investor, and had developed a good repoire on this thread at the time. I had suggested the stock when when the stock hit 9 about 6 months ago. It then moved from 9 to 18 without any reason. That there was no reason for the move pushed me to recommend takeing profits. (actually, many recall I was suggesting selling at about 12 to 14, quite a few points from 18). The stock then collapsed from 18 to 11ish. Then came the conference call. I listened to it, listened to the way they ducked quesions and did not key on positive news releases, etc. and coming away from that conference call, suggested that the stock be sold as it looked like dead money. I had been about at 14 to 18 and so would have anyone who had followed the advice of myself and others regarding the quick appreciation the stock realized. Unfortunately, shortly thereafter the stock announced the restatement. The stock opened at 8ish. I again strongly recommended selling the stock because the company was restating and was coming up with a lame excuse as to why they were not on top of their financial statements. It had nothing to do, perse, with the lawsuit, which we knew would be coming. But because of the restatement. The lawsuits is no big deal. The company has insurance and except for exceptional damages, if any, shouldnt do more than be an annoyance. WDC, yes I am bullish on the stock. I have been so since mid 20s and was aggressively buying the stock at 14 to 15. It has now quickly moved back to 18ish so I am holding, waiting for some profit taking. 30% in a week is just too much to maintain such a bullish stance. I am not selling, though. This is a company with 5 billion in revenues. If margins tick up 1% thats 50 million in profits roughly or 50 cents per share. They are a leader in a fast grwoing industry. Could they face the same problems as S3? Yes. The lawsuits? We all know what a litiguous society this is. That they are suing doesnt bother me. Anyone who has followed WDC knows that in each conference call the management has been flat out telling people that pricing pressures have gotten horrible. They didn't lie, they didnt mistate and they don't ahve to restate earnings. If they ever had to do these things, I would probably say goodbye as well. Please don't assume I am posting on these thread because I am "playing the game". If fundamentals changed on S3 and I thought it was an opportunity, I would come back onto the thread and try to inform everyone. I would doso with the same sincerity that I did the first time around. good luck steve@yamner.com