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

To: Glenn Norman who wrote (12612)	1/25/1999 5:00:00 PM
From: Logain Ablar	Respond to of 14577

Maybe but the IBM design win is HUGE.

To: Glenn Norman who wrote (12612)	1/25/1999 5:15:00 PM
From: Jan A. Van Hummel	Read Replies (1) \| Respond to of 14577

My 2 cents? Potashner has one shot to make heavy write-downs (perhaps more than is needed), because he did not create the mess. Well, he took his shot and chances are now better than 50 % that we will see significantly better results in quarters to come. In the meantime, you could well be right on tomorrow's action, but I would not hold my breath. Jan

To: Glenn Norman who wrote (12612)	1/25/1999 5:16:00 PM
From: Synapsid	Respond to of 14577

Ouch...S3 is starting to look like Cirrus. It appears that the wafer purchase obligations with UMC (USC) and TSMC, as mentioned in the SEC reports, have bitten S3 for the first time. As far as the IBM design win is concerned, it's not a key design win. IBM's 300GL (as well as 300PL) line has been shipping for more than a year with the very same Trio3D chip. They already sold millions of Trio3D's to IBM in 1998. It's more of a "please help us get rid of our obsolete inventory" type of design win. What I would call a key design win would be a major OEM going with Savage-2. Although add-in card and OEM design wins are mentioned in the press release, you can't tell whether those are poor Savage wins like the ones already announced, or real design wins for new products. Again there is an analogy with Cirrus who during their last gasps in graphics had a strategic alliance with Intel for AGP (the prize being having the chip included in Intel's motherboard reference designs).

To: Glenn Norman who wrote (12612)	1/25/1999 6:55:00 PM
From: Calvin Scott	Read Replies (1) \| Respond to of 14577

Mr. Norman, >>Yo_Bubbas............S3 will gap down tomorrow....you may see as low as 3 to 4 dollars per share!<< I believe the after-hours trading speaks for itself. Also, looking at it negatively, one could ponder a drop of a point or so (certainly not 3 or 4). But, as others on this board have stated, Pots is taking all the hurt he can right now. The street can see this and my guess is a slight whimper and then as George says, " Onward and Upward!" Calvin Scott