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Technology Stocks : Vitesse Semiconductor
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To: slob who wrote (1234)2/28/1998 2:26:00 AM
From: gda  Read Replies (1) of 4710
 
Where do you get your info from?

>>>By contrast VTSS's customers (the actual buyers) are often
smaller companies that have huge profit margins

This is BS! Lucent, Cisco, Ciena, LTX are not small companies.
Telecom and Datacom companies are extremely cost sensitive! They are constantly designing ASIC's to get around the high costs of STD products from the likes of Vitesse and PMC-Sierra.

>>>So this means a mature VTSS (Rev around $800M) it is worth
about 8 to 10 times revenue = Market Cap ($6B to $8B).

Come on! Vitesse is a niche player and will always be one. It
will not be able to play the big guys game. As soon as it catches enough attention the big semi houses are going to move in. Fujitsu for example already has a good GaAs process and is becoming more interested.

If anything, VTSS is going to be a target for aquisition sometime in the next couple of years.

Vitesse is a good, well managed, highly motivated little company. Unfortunately it is not destined to become a giant.
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