Mike,
I have heard of VTSS on CNBC and after looking at its chart, no wonder it is a darling of the traders. Please tell me a little more about their business and how they will benefit in the PC environment (assuming that's where they make their living) for the next year.
Thean,
VTSS creates specialty high end semiconductors made out of Gallium Arsenide (GaAs) instead of Silicon. This material is approx 4 times faster then silicon and also can be designed for lower power requirements. Their main customers are in the Telecom, Datacom, and ATE Automated Test Equipment industries. LU, SLB, TER, ALA, CIEN, TLAB and many others are customers.
As the world cries out for bandwidth, VTSS will continue to be one of the leading suppliers to the telecom industry. The line is being blurred between what was traditionally Telecom and Datacom segments.
Where VTSS stands out from other GaAs makers is their focus on the high end applications. Gigabit Ethernet and ATM communications backbones are where VTSS's chips have lead the pack.
Many lump TQNT, RFMD, ANAD together with VTSS, which I believe is misleading. Those companies make the bulk of their chips for lower end applications, most notably power amps for cellular phones.
This is a very quick overview. I hope this helps. I think that the current price of $24 is very attractive for VTSS. I am hoping that VTSS will break below $20. I would consider that a true bargain!
vitesse.com for more detailed info.
Good luck to all,
Michael |
