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

To: Bill Lin who wrote (9154)	2/1/1998 4:04:00 PM
From: AreWeThereYet	Respond to of 14577

Bill, The sub-$800 PC era will help companys like SIII to shake more money from its last generation products. The fab earning should be more than enough to offset the loss on lawsuit. The future of SIII is really depends on how good is SIII's next generation product and will Intel have spare time to invade the graphic industry. Right now the picture is still blur, however it is not a bad idea to buy some cheap SIII at this price (not too much). aC

To: Bill Lin who wrote (9154)	2/1/1998 4:25:00 PM
From: Ken Muller	Respond to of 14577

Bill: You wrote<< then we are looking at $0.50 per share return? yuck!>> My sentiments exactly, but that's what my past experience has shown. If intentional fraud is shown then the liability will skyrocket, but you can then assume S3 will file for bankruptcy protection. Once again very little immediate compensation. Not a pleasant picture. On the case of the GX3 rollout, a big customer of S3's wanted intial protos by the end of Jan. They were working hard to meet this date. As of right now I don't know if this goal was acheived. It may have slipped. I'll have to check. The word I got previously on the patent situation at Cirrus was that they were absolutely 100% solid. No way around them. The only variable was whether S3 would purchase just the patent rights or perhaps buy the division as well. I suspect most of the good people have left by now so it probably wasn't worth buying. The question of someone purchasing S3? I don't think that's a real possibility right now. I think S3 has to prove they can come up with some new winning designs. Provide some profits/cash flow. And there's still the small matter of whether the revenue figures were intentionally inflated. A little too risky for most managers, I think. I am looking around at the other semis who are still making money during this downturn. Although they are more expensive, the investment will probably be safer. Regards, Ken