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

To: JerryP who wrote (12471)	12/22/1998 4:34:00 PM
From: Don Earl	Read Replies (4) \| Respond to of 14577

Hi Jerry, Truly I'm not a gloom and doomer, nor am I the official SIII cheer leader (as I've been accused of in the past). To the best of my ability, I try to look at what's really there and what it might mean over a period of time. I have a substantial investment in SIII which would be brain dead stupid if I thought it was a bad company. At the same time I don't know of any company that is so perfect that there are no aspects of it's business that constitute risk and uncertainty. SIII isn't an exception. My investments tend to be based on a companies actual assets and the quality of their technology/products. Along with projections that certain events will eventually take place. If some of my posts appear to be "gloom and doom", you can chalk it up to impatience or irritation that events didn't unfold as anticipated. My major source of irritation at the moment is that Savage was released before driver and compatibility issues were perfected. The Intel deal may or may not have screwed up my anticipation that S3 will develop a product similar to Intel's Whitney chip set. Here are a few of the things that I believe to be true or will eventually come to pass: 1. USC will eventually go public and S3's investment will show up as a minimum $4 increase in book value. 2. A perfected version of Savage is the best part an OEM can buy for cost vs. performance which will bring revenue back to FY 96 and 97 levels. 3. A board based on reference designs released last summer will kick revenue from Savage into orbit. 4. S3 will still probably introduce an integrated single chip solution for the low end market. 5. S3's revenue and stock price will reach an all time high around the middle of the year 2000. 6. Revenue from Savage will look kind of sad until the new drivers are released. 7. Revenue wise, the Intel news was a three day wonder and is a non event for at least 3 quarters. 8. Intel buying SIII on the open market would be a big deal, buying options is not. 9. There will be more amazing stories in the coming months that will move the stock price higher. In spite of the wild assed swings in the stock price since I've been invested in SIII, the fundamental reasons for my investment really haven't changed much since I bought my first shares. It pleases me to play devils advocate at times in the slim hope of stimulating some sort of intelligent discussion on a topic, but even when I can't shake loose some free thinkers, my odd sense of humor gives me almost as much pleasure from all the puzzled huh?'s. My personal opinion is that SIII would be fairly valued in the 9-12 range and I'm tickled to death to see my net worth looking as much better now than it did a couple months ago. Even if I question the quality of the news, at least it's brought a lot of attention to the undervalued nature of SIII. Regards, Don