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To: Tradegod who wrote (574)	5/25/2000 12:36:00 AM
From: Glenn D. Rudolph	Respond to of 57684

I'm avoiding VERT for now. The BtoB seems to have lost interest among the traders and I'm afraid it's gonna lag other sectors if this rally holds. This is just a gut feel and not based on any sophisticated chart work. I tend to agree but am not sure I want to take the loss now and move the funds elsewhere. I can't seem to time a market sentiment change so the buy and hold may work best for me. One that confuses me is ATML. It was a momo stock and has been halved. My understanding is they are one of a few providers of key components (flash, etc) for cellular and other non pc hot items. These items are severely constrained which makes me think that business should be brisk I just started to look at them. Flash has to be in huge demand. I have to see who are their competitors. I did become more aggressive on MU today. I wrote naked puts the October 60s and bought more shares at 59 and change. I had read a lot on flash months ago but I can't recall much of it now meaning who had the capacity, etc. Speaking of being halved but being in a good product line is SBL in my opinion. My average cost there is in the low 50s?? It has been really squished too.

To: Tradegod who wrote (574)	5/25/2000 12:45:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 57684

Investment Highlights: ? In today?s evening edition of the Nihon Keizai, it was reported that Sharp Corp., the world?s 4th largest flash memory supplier in 1999, is increasing pricing on its flash memory products by up to 30% on rising demand from mobile phone manufacturers. ? In our opinion, this is a substantial pricing increase and is a further indication of the accelerating scarcity in the supply of flash memory products driven by a multitude of end market applications, including cell phones, set-top boxes, personal computers, and personal digital assistants. ? We believe that Atmel ($45 3/8; C-2-1-9) ? with its nearly 30% exposure of revenues coming from flash memory ? is particularly well positioned to capitalize on the explosive demand for flash. At the Merrill Lynch Hardware Heaven conference earlier this week, Atmel stated that bookings for the company are accelerating ? particularly for memory and application-specific integrated circuit (ASIC) products sold into cell phones ? and the company now appears to be capacity constrained for the remainder of C00 and well into C01. Atmel also stated that it believes the supply situation is going to get worse before it gets better. ? Given that Intel is Sharp?s manufacturing partner for flash, we believe this news makes it a likely scenario that Intel also should continue to raise prices on its flash memory products. ? We reiterate our Accumulate/Buy ratings on ATML and our 12-18 month price objective of $75. Bulletin United States Semiconductors 5 May 2000 Eric Rothdeutsch Vice President Christopher Danely Industry Analyst Flash Memory Scarcity Accelerating Sharp to Raise Flash Pricing by 30%; Good News For ATML and others Reason for Report: Company Update Merrill Lynch & Co. Global Securities Research & Economics Group Global Fundamental Equity Research Department RC#10212607 Industry