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Technology Stocks : Vitesse Semiconductor
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To: V Lakshman who wrote (204)9/22/1996 10:51:00 PM
From: VoodooFL   of 4710
 
Have you followed Anadigics as well. They are opening a new chip fab as well in 97. Margins had been increasing along with profits, however they are announcing lower than expected earnings for the third quarter mainly due to the expenses incurred with the new plant. They are taking over another building and I believe this buiding was a mess. The governor was there last week for a ground breaking ceremony. They will be doubling thier number of employees to add this capicity.

I considered VTSS, but I couldn't justify it do to current P/E levels (even past levels), especially when comparing to Anadigics. VTSS certainly gets a lot of PR coverage in comparison. Where is that coming from?

If VTSS experience these same costs wouldn't you expect a similiar drop?
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