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

To: mopgcw who wrote (4372)	10/1/2005 11:34:32 AM
From: JK	Respond to of 4710

Entry into Material Agreement >>> really tanking over this? <<< Probably yes, combined with the end-of-quarter selling. VTSS has been a losing stock and I see no short term reason for it to go up much. Maybe back to $2.20. Not my opinion, but a guess as to the street's actions. I own shares for better or worse because of the coming "Shootout at OK corral" between SBC, Verizon, and the cable companies. All are working on variations of high speed broadband to the last mile. FINALLY. The shootout will help LU, GLW, CSCO, JNPR, ET. AL., the folks that VTSS and AMCC sell to. IF VTSS begins to be profitable, it won't stop at $5. After ten years of vegetating, the telecoms woke up and realized that their wireline cash cow is on a diet. Cash inflows are still enough to help pay for the transition to fiber to the home or fiber to the neighborhood. Laws are being changed to let the telco's offer IPTV and compete with cable. Cable companies are seeing this last mile too and need to protect their current stake. Real winner is the broadband consumer. My bet is that both AMCC & VTSS will finally, and significantly, get into the black sometime into 2006 - 2007. I did say "bet". Is it a strong 'buy' here? Probably not. But we could see easily $3 - $3.50 by January as analysts start to look down the road. Disclaimer: I own positions in both AMCC & VTSS. Money where Mouth is. - jk