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

To: Stu who wrote (11958)	9/9/1998 12:05:00 AM
From: Don Earl	Read Replies (2) \| Respond to of 14577

Hi Stu, <I don't know much about the technology of these chips, so I don't see any big difference in the quality of SIII's products and competitor's products. Does SIII have any technological advantage over other companies?> The big advantage of Savage is price. From the tests I've seen it's as fast or faster than any of the new chips coming out but at about half the cost. Jr. wants a faster chip for his computer so he can play games after school. He talks mommy and daddy into taking him to the store. He wants a Voodoo board because he's heard it's the best, but the salesman tells mommy and daddy Savage is as fast and costs half as much. Question: Which chip does mommy and daddy buy for Jr.? Whenever a stock gets beat up everyone ALWAYS complains about management. If you go back about 2 years it's pretty obvious that there were some mistakes made by management but the majority of folks complaining about management have bought stock within the last 6 months. As close as I can tell, in the last 6 months, management has busted ass getting Savage out the door and killed themselves to drastically cut costs to preserve capitol in a market that turned ugly almost over night. I think they could use some new blood in the marketing area but otherwise I don't see any real problems with management. I'm more than a little amazed that SIII ever broke below 5. Maybe briefly test 4 3/4 and bounce but 3 is ridiculous. The stock would be fairly valued in the 8-10 range, with runs into the low to mid teens in good quarters. With nearly text book perfect head and shoulder patterns in the Dow and NASDAQ, I'm betting that value plays based on fundamentals is the way to go. I've never been a fan of momentum investing and I'm even less enthusiastic about it with reversal patterns fully established. On the other hand SIIIs chart looks like it did 4 years ago before it went from 3 to 20. Yep, right now it's about revenue. I still think they will beat estimates this Q, but probably not by as much as I originally anticipated. Q4 should smoke. Possibly wiping out the entire years losses. We'll see. Regards, Don PS: This post contains forward looking statements and actual results may vary.