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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: Ram Seetharaman who wrote (1715)	5/18/2000 9:20:00 AM
From: Robert Scott	Respond to of 2882

The market cap high for chip stocks during the last cycle was 15X revenues so keep an eye on this level. Don't get too sucked in to the internet valuations - chip companies are cyclical - enjoy the ride for the next 2 years but at this point, I am holding a core position in each stock (ADI, ATML, LSI, IRF and VSH primarily) and trading extra shares off the core position. This is a very effective strategy because we know earnings are going to pull us through especially this year so buy when they are down 25-30% and take 15-20 points when they go up. It will not hurt to hold them even if you miss the sell trade.