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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: George Sepetjian who wrote (2852)	10/3/1999 6:14:00 PM
From: SJS	Respond to of 4710

The market will naturally differentiate, like it did in the early days of infrastructure networking. Eventually BAY, CS, COMS, ASND, USRX, CSCO and the smaller fish were either snapping up or got themselves snapped up. Early casualties were Synoptics and Cascade, then dozens of others. CSCO's still snapping up as it moves from enteprise networking to a broader appeal. That will happen here, too. VTSS, AMCC, TXCC, TQNT, BRCM - Who will buy and who will be bought? However until it does, just like before, all those sprinters were good bets at the time. Many of us made dough on most of them. CSCC was a barnburner, as was COMS. The trick, as you said, is to bet right today on the "in for the long haul" segment winner, but know when to lighten positions on some of the other players when the turn starts. If they don't get bought, they will certainly crumble. If we've learned anything from the consolidation in the networking layer guys, this will repeat in the IC telecom chip guys. The buyouts get more frequents, as the industry shifts to a couple of bigger guys that do more. With INTC and IBM making serious overatures into this area, that to me, is one of the first signals that the potential for consolidation has begun. Steve