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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!!
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To: Larry S. who wrote (5577)3/8/1999 8:39:00 AM
From: Ed Nielson  Read Replies (2) of 6565
 
Who still has stock that they bought when the company went public at $13? The stock market is for trading and is speculative in nature. The MM's certainly didn't buy at $13 that many years ago and just sit on the stock waiting for it to grow -- of course a CD would have yielded better in those circumstances. The MM's jump in and out as things change, and judging from the average volume in the sale of the stock over the years I would say that the large majority of others do the same. As Tom and company have proven with AIM, it's not necessarily in the share holders interest that a stock always rise in price. And there are very very few that ever do.

With the Philips' offer, they're not even paying for the San Antonio fab -- and there's cash available on top of that. The fab is an up-and-running state of the art 8" line with 0.15um technology getting qualified. How long would it take Philips to build and qualify a plant like that? How much would it cost them? As I said in an earlier post, they're trying to get in on the cheap before the semiconductor cycle really begins its' upswing -- it's already started -- and VLSI stock starts selling for much more than the ridiculously low $10-12 range that it was trading in before they made their offer.

As for shareholder value -- that's a relative term. I think the AIM'ers appreciate the value they've gotten out of this stock -- sorry to you all if I misquote you on this. But once again, the semiconductor industry is cyclical in nature and the price of the stocks (not just VLSI) follow the cycles. Get in low, get out high, you've got value.

In the mean time, you can be sure there are others who have been looking at VLSI for quite some time. As Larry said, let the games continue. And now the question is, who will be the highest bidder?

My 2c worth

Ed
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