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Technology Stocks : Applied Micro Circuits Corp (AMCC) -- Ignore unavailable to you. Want to Upgrade?

To: Joanne Fishman who wrote (598)	8/4/2000 1:32:55 AM
From: Raymond Duray	Read Replies (1) \| Respond to of 1805

Hi Joanne, Thanks for the head's up. My experience has been that these sort of seminal events with the dramatic increase of common shares usually indicate that the period of hyper-growth in stock prices is at an end. AMCC is no longer a wunderkind and will, in the future, be a very solid performer, but IMHO not the rokkitship it was in '99. The good news is that a lot more institutions can take a position in the stock without the typical trepidation that fund managers have about excessive ownership concentration. Furthermore, acquisitions matter. Wall St. puts a premium on predators. :)) Certain customers of AMCC have in the past not purchased certain devices because of a concern about allocation (i.e. production backlogs causing product shipment delay). A new production line could go a long way toward alleviating this impediment to top line growth. I would prefer to see "fabless" solution, like PMCS or BRCM is engaged in, but I have confidence that Mr. Rickey and his staff have weighted the options and made a wise decision. I've been through other share balloons before, and if the company is basically sound, it is not something to be feared. It just means the hockeystick in the stock price graph going to flatten out. Come to think of it, we've already seen that, haven't we? <gg> Regards, Ray

To: Joanne Fishman who wrote (598)	8/4/2000 2:18:24 AM
From: Guy Gordon	Read Replies (1) \| Respond to of 1805

Yahoo says the market cap of AMCC is 17.6B. At 141/share that means 125M shares outstanding. The Float is 112M. Your numbers seem to say there are 180M authorized shares, which is not enough for a split. 630M shares is enough for a 2,3, or even 4:1 split. At 141/share I fully expect at least a 2:1 split. 3:1 would make more sense and still leave shares for acquisitions. The runup from October 1999 has been so steep in fiber related stocks that they haven't had the time to split their shares back to the $50 range. But I expect that to happen eventually.