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Technology Stocks : Vitesse Semiconductor

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To: Duane L. Olson who wrote (643)5/28/1997 9:42:00 AM
From: Steve Robinett   of 4710
 
In a word, Duane, valuation. As I said in an earlier post, VTSS is an excellent company but the large amount of insider selling--not just a few sellers here or there that you might expect after a runup--probably says insiders think the valuation is a bit on the high side. With about 38 million shares outstanding and about $92 million in revenues, VTSS is selling for something on the order of 15x sales and a P/E of 58, IMO a little ahead of itself.
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