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Technology Stocks : Vitesse Semiconductor

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To: VoodooFL who wrote (233)10/10/1996 2:34:00 PM
From: SI-Shark   of 4710
 
Bob,
I intend to close out my positions on the next low dip.
I dont want to take the risk of a rally based on a strong Q3 report with continued earnings growth at VTSS.

My gut feel is that we will have a slight rally but that this will retreat when everyone works out that VTSS would have to continue at its current rate of sales growth with earnings % remaining constant for about 2 years before this stock was fairly valued. From a technical standpoint I dont think that they will have anything like the same market share in 2 years. Thats why I am a long term bear on VTSS, however out of respect for the momentum this stock has I make sure that I cover on all events likely to cause a rally.

regards
Si-Shark
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