SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ricky who wrote (3110)3/5/1998 6:15:00 PM
From: DanZ  Read Replies (4) of 6565
 
Rick,

Everybody is entitled to an opinion but it would be helpful if you would provide some rationale for your prediction. Are you basing 12 to 14 on technical indicators, fundamental indicators, gut indicators, or other indicators?

From a chart perspective, the stock has a lot of support in the 18 area.

From a fundamental perspective, VLSI is trading at only 16.5 x First Call's 1998 mean earnings estimate versus 22.4 x for INTC (prior to today's trading). The PE divided by the expected growth rate is only 0.75 for VLSI versus 1.12 for INTC. VLSI is trading at 1.7 x book value versus 7.4 x book for INTC. One last fundamental tidbit: the First Call estimate for VLSI was cut from 32c to 18c in the past 7 days while the estimate for INTC has remained unchanged at 93c over the past 60 days. This is significant because most, if not all, of the earnings downgrades are probably already priced into VLSI whereas one could argue that the downgrades aren't yet factored into INTC (at least prior to today's trading). All of these things tell me that VLSI is trading at a more reasonable valuation than INTC.

I can't see far enough out in the future to predict 12 or 14 and I'm just wondering how you came to that conclusion. By the way, I'm long 11,000 shares of VLSI at an average price of about 19. Do you have a position in the stock?

Thanks,
Dan
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News