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

To: The Gambler who wrote (4253)	11/1/2002 4:36:27 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 4710

that street.com article pretty much summed it up imo, vtss started to run right after their results. It was a combination of debt repurchase and cost cutting on the financial side, and a transition away from transport products on the product side. Lots of comm equipment chipmakers have plans to transition to other areas since telecom collapsed but vtss has already gone through the design process for their new lines (so they are ahead of say, AMCC and LSI in repositioning). They have metro products and storage... the storage products appear to be leading edge as the CEO said it is the only 2Gb storage solution available. The non-LH transport LOBs are growing at 10%/qtr, not bad in this environment even if its only a 4mm/qtr increase in revs. So overall just a complete turnaround from debt-laden, no sellable product company to financially viable, competitive product company. Lizzie

To: The Gambler who wrote (4253)	11/1/2002 9:55:00 PM
From: stock leader	Respond to of 4710

Investors with higher equity can in fact short stocks under $1. However, the collapse to .62 was simply a bear trap. The same paranoid reasoning that made some folks dump at .62 also made shorts jump on in sub-1 range. It's really a study in psychology. Intense greed filled the shorts when VTSS got below $1 and they shorted aggressive with the thinking that it would keep going lower and lower (because the tech environment is so rotten) It's all about psychology of the moment and shorts fell into it and number have been forced/panicked to cover this week. Just a bear trap and they paid the price. that's why sub-1 stocks are so very tricky to short.