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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: Joseph E. Caiazzo who wrote (2851)	1/26/1998 3:36:00 PM
From: Maui Jim	Read Replies (1) \| Respond to of 6565

Joe and Tom, Intel and VLSI are both great companies, for different reasons. However INTC is selling for nearly 6 times sales, VLSI for just over 1 times sales. Although Intel has very high margins, the wireless division of VLSI, their fastest growing sector, is internally generating over 20% aftertax IMO, with the rest of the company bringing the overall number down to 10-15% range, still decent numbers for any semiconductor company at present. Jim

To: Joseph E. Caiazzo who wrote (2851)	1/26/1998 5:59:00 PM
From: OldAIMGuy	Respond to of 6565

Hi Joe, A quick glance at Value Line's latest report shows a 1997 Boo Value estimate of $11.35 and a potential double in the next 3-5 years. This is the same as INTC. However, I note that they are no longer calling for a double in revenues at VLSI in the same period. INTC is predicted to pull off yet another double in revenues, however. Sorry for the bad reporting. I guess my point is that with a Price/Book Value of 1.76 for VLSI and 6.36 for INTC (INTC is showing a Book Value of $11.80 vs VLSI at $11.35), VLSI looks like the better value. Also, INTC looks like it's heading into a gross margin contraction in the same period as several companies eat away at some of its Pentium business. As you know, I have a bunch of my net worth riding with VLSI. I'm hoping to be rewarded nicely. Best regards, Tom