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

To: Glenn Norman who wrote (12617)	1/25/1999 9:26:00 PM
From: Jan A. Van Hummel	Read Replies (1) \| Respond to of 14577

I don't see a real problem with it. There is only a dilution if they extend stock grants rather than stock options. Frankly, I did not see the formal statement so I do not know whether there are any plans to use a good portion for grants. Stock options are usually issued at market price. In effect that means that should the option be exercised the company gets paid the market price at time of granting the option. No dilution here. I strongly believe that workers with stock options are more motivated to see the stock do well, than workers without stock options. This will drive them to focus on what enhances stock value. That is where we all would benefit. I rather see them do this than create an insufficient reward system that would kill the company before it even has a chance to prove itself again. Also, the external market largely dictates what S3 needs to do, whether they can afford it or not. Potashner a case in point. However, stock options, granted all around or not, are no guarantee that the stock will go up. Management will have to create the conditions that will enable all to optimize their contribution to the organization. I am still in S3 but mainly lurking the thread. I do not think that we will see any meaningful movement until S3 shows some positive results and that may be some time away. I am more confident now though because of the Intel deal. Also, as a new CEO you only get one opportunity to sweep clean, just like Gerstner did at IBM. You just take all the write-offs and more so that your next quarter will show a marked improvement. The street often takes write-offs as a positive sign (management is finally facing reality). If then indeed the next quarter does come out much better you will likely see a solid bouncing back of the stock. Even though I still own S3 (I hate to take a loss) I did find greener pastures softening the pain of S3 (GG) Good to see you around. (BTW I left Dallas, am in Austin now). JMHO