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To: Poet who wrote (7981)	12/3/2000 11:12:32 AM
From: Lost to Voodoo	Read Replies (2) \| Respond to of 10876

Wall Street analysts and money managers unanimously picked Globespan Huh? This is a new one on me. Have you ever heard of them? Not that I know everything, but I thought I was familiar with most of the well known tech names, yet they picked it unanimously? Is this a plug? Interesting article though, thanks.

To: Poet who wrote (7981)	12/3/2000 11:20:14 AM
From: t2	Read Replies (2) \| Respond to of 10876

I have shifted a lot of money to the chip sector. I had bought the low PE chip stocks like CMOS, MU, CY---avoiding the PMCS, AMCC, VTSS etc. types for a while. The hits in the value chip stocks were somewhat less than those experienced by the high fliers like PMCS. That was my reason for avoiding JDSU for a while as the market cut PEs in a big way. This past week I started loading up on the high PE chip stocks. All of the CEOs of these companies are very bullish in their public statements, sometimes even angry how people are jumping to the wrong conclusions in the communications/optical sector spending patterns. VTSS CEO reminds people that even if Lucent has no growth in end sales, VTSS's biz to them will increase due to increasing complexity. PMCS CEO has been pointing out how the barriers to entry into their business is every increasing (i am paraphrasing) due to increasing complexity. When one looks at JDSU, growing at 115% to 120% with a PE of 60 for June 2001....it is cheap. I could not hold off buying these types of stocks last week. The market was selling the chips indescrimately and of course sometimes one has to get out of the way! The concerns over PC sector is going to drive a lot of money to the optical, communication chips, networkers. The spending slowdown theories have played out, most realizing that broadband growth will continue while traditional spending on voice will decrease. The networkers appear to be more confident with their growth rates than the PC vendors. That is why a lot of new money will be going here. The chip sector is going to lead the way, especially the PMCS, VTSS types. I also think the PC chip stocks have gotten real cheap (except Intel which normally trades at a premium) such as MU and CY. To me it looks like the chips are going to bounce back across the board.

To: Poet who wrote (7981)	12/3/2000 12:52:42 PM
From: dli	Read Replies (1) \| Respond to of 10876

Poet, thanks for posting that article. Unfortunately, it misses the best value of all in the communications chip sector which is IDTI. It's currently trading at a forward PE of only about 12 (I scooped some up on Thursday at $28). Personally, I'd still shy away from AMCC, PMCS, and BRCM as their relatively better growth prospects than the rest of the semis which the article cites as a buying reason are IMO still fully priced in with forward PEs close to 100. With IDTI OTOH that's clearly not the case. Technically, IDTI may have done a successful test of bottom on Thursday (we should get confirmation or non-confirmation tomorrow) which had the feel of a major liquidation panic by institutions. GSPN also looks interesting from a technical viewpoint as it is right at major support from the Fall of 1999. Should be good at least for a bounce. Dave