VLSI Technology - Waiting for good news from NASDAQ !!! Message Board

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

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To: lifeisgood who wrote (5807)	3/19/1999 10:37:00 AM
From: OldAIMGuy	Read Replies (3) of 6565

Hi LIG, I've been reviewing VLSI's record as far back as I have records. They came public in 1983 at $13/share and $3.42 for Book Value and Revenues of $35.8MM. Two years later, Revenues were doubled to $78.7MM and BV had risen to $5.13. By '87 Revs. were $172MM and BV was up to $6.15 By 1990 Revs. had nearly doubled again at $324.8MM but BV was flat to slightly down. Again another double in revs and improvement in BV by '95. It's at this point that revenues stalled while Book Value continued to grow to its current ~$12/share. From this point forward, I'd guess these folks could double the peak sales of a couple of years ago within 24 months and probably continue to add to book value as well. With all those doublings, one would have expected the stock to have managed much better than it has in all this time. The earnings trail is the most obvious answer. If there is disappointment, it was the overall margins. Earnings seemed to bounce like a superball. It was my "bet" that the ball was going to start to bounce higher with each cycle and I am still an investor because that belief is still in place. This stock has been in my portf. since late 1990 or early 1991. I have no complaints. What I'd anticipated was a long term growth of sales and book value and I got it. It was AIM that continued to take advantage of VLSI's inconsistent earnings trail by buying on weakness and selling into strength. Thank you Mr. Lichello, wherever you are!! Philips or any other company merging with or buying out VLSI is not the end of the world. If it's a cash event, then it's a taxable event for me. If it's a stock swap, then I have to decide whether I want the new company's stock. We faced that with DIGI and Alcatel last year and I chose to pay the taxes and be done with it. So far that's proved to be a wise decision. I'm enjoying the thread here more than almost any time in the past. The mood, speculation and strategies expressed here are great. If the internet needed a highlight as to how well its instant transfer of information and breadth of its "community" is, this particular event has justified it. At this point the better Mr. Stein does, the better all the Longs do. Best regards, Tom

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