Vitesse Semiconductor Message Board

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Technology Stocks : Vitesse Semiconductor

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To: Dan Spillane who wrote (514)	4/2/1997 5:47:00 AM
From: Scott Moore	of 4710

What will be the effect of lower earnings per share? There has got to be a psychological factor, because the split will affect EPS. Here's the math including an increase. Last quarter, 25 cents x 1.125 (50% annual or 12.5%/Qtr) = 28.125 cents Adjusted for 3/2 split = 18.75 cents Which jives with Zacks 19 cents EPS estimate this quarter and $1.05 for year 97. Where is the upside potential here, when at best it has a forward PE of 26.8 at today's price? I'll be looking to short on any gap up day after a runup like the last one it had to 32. It may not get there, though, so an entry point might be a decay to the previous day's high after a gap up opening. Good thing they didn't issue a full 25 million shares like rumored in early January, they'd really be in the toilet now. Just stirring the pot here. Of course, this thing is all over the place. You could probably put in any type of order and get out for a point profit in a day, or a couple points within a week if you don't get motion sickness first.

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