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Technology Stocks : Vitesse Semiconductor

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To: Robert Talty who wrote (313)11/27/1996 9:44:00 PM
From: Clay Cunningham   of 4710
 
I couldn't agree more. A recent WSJ article said that the price to
sales had proved to be a more important factor than even earnings
growth. Dean Witter's upside price target for VTSS was $41 for
the year. It does not recommend purchase above this price.
Another broker has had a 'hold' on VTSS for some time. Besides this,
common sense observation tells you it is too high right now. Most
experts are stating that PE ratios are too high for many stocks. Of
course VTSS is in this category. Its PE ratio is one of the highest
in the market! And the PE ratio is very important in this case because
VTSS has established a two year history of earnings.
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