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To: Jamuck who wrote (10239)	10/9/1999 6:52:00 AM
From: Thean	Respond to of 14427

Thomas, Since ALL is definitely in the value camp, and we are heading into the end of the year, my take is if you can hold this 6 months or longer you probably will be rewarded well. As you know the current street sentiment favors anything with vibrant growth and punishes all things "value". If ALL does not pick up late in the year after the Q release (provided they don't say anything negative further for future Q's), they will very likely get a boost in Jan when all things cheap get a lift whether justified or not simply because of Relative cheapness. I have seen this thing works like magic ever since early 90's. However, all bets are off if natural disasters strike one after another harder and harder. One just needs to see and hear if this indeed has become a pattern going forward. I also have a value stock candidate that is in the same camp except this is a tech stock - PMRY. This used to be a growth stock but the street changed its opinion early this year and PMRY never recovered this year. How about a PE of 6 for a IT service company?

To: Jamuck who wrote (10239)	10/10/1999 7:17:00 PM
From: SJS	Respond to of 14427

How's 5 years out in a hot segment? This except is making the rounds on the chip threads here, and for good reason.... ___________ Merrill's research team has just completed a 100-page communications semiconductor report on Friday, Oct. 8, 1999: Highlights: * We expect robust growth in communications equipment end markets over the next five years driven by the Internet, converging voice and data networks, and deregulating telecom service markets. * Suppliers of standard (ASSP) silicon should grow faster than the overall sector, as equipment vendors leverage standard products to gain time to market and focus scarce engineering talent at higher value added activities. * Suppliers of standard wide area networking (WAN) silicon should grow faster than the overall sector - at CAGRs of 20-33% over the next five years. * The risk is in the high multiples that the stocks in this group command. However, we believe that the multiples are justified. We are in the early stages of several secular industry trends, which lend increased confidence to the projected growth rates and EPS for companies in the sector. * We are reiterating BUY ratings for the intermediate or long term include Broadcom, PMC Sierra, Vitesse and Conexant Systems. Companies we are recommending at an Accumulate rating include MMC Networks and Galileo Technology. * We are initiating coverage of two additional communication-focused semiconductor companies - Applied Micro Circuits Corp. and TranSwitch. Applied Micro is being initiated at a rating of Accumulate for the intermediate term and Buy for the long term, while TranSwitch is being initiated as an Accumulate for both intermediate and long term.