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

To: the hube who wrote (12589)	1/22/1999 4:30:00 PM
From: Rob	Read Replies (2) \| Respond to of 14577

Right, John. Guys, I think we need to relax a little about this bit of boilerplate. True, I'm long some calls on SIII, so my bent at the moment is bullish, but we've all seen this before. Just because MSFT routinely buys large amounts of stock in the open market doesn't mean that's the only way to amass shares for uses such as those stated in the filing. MSFT can do this - and does - because it generates an embarrassing amount of cash and needs to put it to work. Struggling companies and turnaround plays need to be more creative simply because their resources are limited and targeted (hopefully) towards new technologies and, yes, beefing up a dispirited talent pool. This new SIII management would be suicidal to effect a dilution of the stock at these levels. I'd expect that they're looking out a couple of years and are hopeful that they'll need the shares for a split or "consolidation-type" acquisition. Just IMHO. Good luck. Rob

To: the hube who wrote (12589)	1/22/1999 11:25:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 14577

John, it depends on the "by-Laws", many corporations have by-laws that do not require shareholders authorization for splits and the total par value of the authorized capitalization (the par value is typically split with the stock split, unless the stock split is a true dividends, which is rarely done, since it should be taxable), and thus automatically double the authorized number of shares. There are some cases where such split which involve appropriate increase in authorized shares require stockholders approval, but these are rarer. Zeev