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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!!

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To: Ed Nielson who wrote (5569)3/7/1999 3:22:00 PM
From: Ram Seetharaman  Read Replies (1) of 6565
 
If Philips (or someone else!) pays cash for VLSI, then VLSI will become part of Philips and essentially be absorbed in their ocean. It will be difficult to measure VLSI's growth thereafter, since that company may restructure it and write off certain assets/values. On the other hand if a company buys VLSI with their own stock (and if that stock happens to be a growth stock!) then VLSI may grow with it.

No one was calling VLSI a growth stock ten days ago, when it was trading around $ 11. That price was below the offer price of $ 13 when VLSI went public in 1983! After nearly 16 years, the stock has not performed at all and was a lousy investment for long term holders.
Even if we get $ 25 for VLSI, it is still a lousy deal for long term holders. Bank CDs would have yielded better over 16 years!
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