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

To: John Lynch who wrote (9052)	1/28/1998 3:28:00 PM
From: JerryP	Read Replies (2) \| Respond to of 14577

Hit him hard, John. It's going to take awhile for this newest design win to take affect. Maybe by the close the price will have dropped. "WHAT?!!!??, you say! Look over the last 8-12 months. I think every design win has been followed by drop. The only reason I see that it's up now, is that the rest of the market is up.....but that's usually a contrarian anyway. Whimpering in my frustrations. :-( JP "Onward", George, and upWARD

To: John Lynch who wrote (9052)	1/28/1998 8:04:00 PM
From: mark doubiago	Respond to of 14577

I am guessing that this design win is for one of the higher priced and therefore low volume models. If that is the case, then this win is mainly good for morale and will not add much to the bottom line. If this is not the case then bravo for S3, but then you have to ask whether they are making any money on it or selling the chip for cost. Wasn't this their first mobile chip that has been out for awhile and was not generating much interest? I thought that they had a newer and probably higher margin chip out as a replacement. As previous years have shown, design wins do not necessarily make a robust and profitable company. In S3's case, less wins at higher margins could be better than lots of wins at break even or below cost. Toshiba has been loosing market share recently and they are not as impressive a win as they once were. I don't mean to be negative, but after following S3 for 3 years now, I have learned that S3's world is not always what it seems and that things should be looked at with a more critical eye.