Vitesse Semiconductor Message Board

STOCKTALK

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 : Vitesse Semiconductor

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Clay Cunningham who wrote (316)	11/30/1996 6:43:00 PM
From: Robert Talty	of 4710

Clay, Thanks for the support. I only wish that stock price was as easy to predict as fundamentals, if that were the case than I'd have retired years ago. Personally I think that P/E is a meaningless number for any high growth semi stock. It's a number that is decided in the board room to please investors. I would rather see the company spending more money on new designs or new socket wins. This is where future high GPM growth is generated. As VTSS has clearly demonstrated you can always place another offering to give you the cash to expand manufacturing. Any comments? When investing I like to look at far more fundamental data than P/E Firstly I look for high new product profit margins (over 60%) and new product revenue growth exceeding 100%. I than look at competition and manufacturing capacity and yield. I think that a lot of people seem to forget that a semi company makes most of its money from producing chips. It's not like a board product company, where production is often done by some PCB contractor and nothing like a software company where copying the software is your only manufacturing step. With an IC company once you reach 100% capacity your growth stops. regards Robert Talty

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next