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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Outer-limits who wrote (4167)	8/12/2002 9:08:04 PM
From: BWAC	Read Replies (1) \| Respond to of 4710

BV is just over $2 currently. Per most current company Balance Sheet. 198 Million shares/468 Million Equity. Condensed Consolidated Balance Sheet Data (in thousands) (unaudited) as of as of June 30, 2002 Sept. 30, 2001 Assets: Cash and investments $ 472,235 $ 674,634 Accounts receivable, net 47,213 53,730 Inventories, net 26,870 44,833 Property and equipment, net 116,430 248,332 Other assets 345,166 911,253 Total assets $1,007,914 $1,932,782 Liabilities and Shareholders' Equity: Accounts payable $ 16,933 $ 21,463 Accrued expenses and other current liabilities 36,211 37,222 Long-term liabilities, principally debt 485,862 545,092 Shareholders' equity 468,908 1,329,005 Total liabilities and shareholders' equity $1,007,914 $1,932,782

To: Outer-limits who wrote (4167)	8/12/2002 9:33:03 PM
From: The Ox	Read Replies (1) \| Respond to of 4710

VTSS is a member of the S+P 500 but VTSS's market cap no longer justifies it's inclusion. One of these days, S+P will put out a press release saying it will be removed from the index. It's possible that we are seeing some funds sell off VTSS in advance of their removal or formal notification. Also from SSB: Message 17811370 VALUATION Our $5 price target is based upon a 2.5x book value of about $2.00 per share. Our 2.5x book value multiple is based on the midpoint of the historical range that semiconductor stocks have maintained in previous downturns over the past decade. A price-to-book value metric is used for Vitesse due to the uncertainties in sales numbers given the difficult telecom environment and the uncertain path to profitability for the company. Even though the $5 target offers good return possibilities, we believe the risk profile keeps the stock off of our Buy list.