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Technology Stocks : Vitesse Semiconductor

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To: Cameron who wrote ()2/27/1996 7:30:00 AM
From: Jacob S. Rosenberg   of 4710
 
I saw an article about Vitesse in a magazine and I'm interested
in buying some stock. However, it has a PE ratio above 99 and
it also has a relative strength of 99. The mitigating factor seems
to be that it is touted to have a growth rate of 200 percent, so
that the ratio of the PE divided by the growth rate is a respectable
0.5. Nevertheless, this is based on one person's projection on the
firm's income. In addition, it went up over two points yesterday
to 21 1/4. The stock is on fire. All of this worries me. I'm
going to wait for a shakeout and buy the stock on a pullback;
provided it isn't too severe.

Jacob Rosenberg
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