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Technology Stocks : Vitesse Semiconductor

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To: roger m who wrote (621)5/19/1997 8:59:00 AM
From: Steve Robinett   of 4710
 
The insider selling probably indicates insider recognition that VTSS is WAY overvalued. Fundamentally, VTSS is a good company with good products by most measures (market cap/rev, market cap/margins, P/E, etc) expensive. They're also running up debt to pay for expanded fabrication facilities. One of their competitors, TQNT, is in a similar position though insider sales at TQNT are nowhere near as dramatic.
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