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

To: Kevin Hay who wrote (2910)	2/11/1998 7:16:00 AM
From: shane forbes	Read Replies (1) \| Respond to of 6565

Kevin: You hit it correctly by focusing on predictability. This market rewards predictability even though the growth rate is anemic. To verify this look no further than Coke... Another important thing on valuation is upward revisions. This may be the chicken-before-the-egg story but the more regularly analysts up their revisions the more attractive the story is to the big institutional folk. (Another thing in MSFT's favor.) Pricing models also need to have psychological factors for the semis! And I'd love to see how people measure that. Finally product transitions can wreak havoc with the best pricing model.

To: Kevin Hay who wrote (2910)	2/11/1998 11:59:00 AM
From: OldAIMGuy	Respond to of 6565

Hi Kevin, <CHAT> How'd you know to find me here!!! Poor price stability is actually an attractive feature to me and the model I use for portfolio management. I regularly screen Value Line's database for stocks with very high BETA (upper left hand corner) and very low Price Stability (lower right hand corner of the stock page). The Price Stability rating runs from 5 to 100 with 100 being the most stable. Most of the stocks I own are 5's. The last I checked VLSI is also a "5." It would make the stock attractive to short term traders (or is the result of short term trading? Which comes first??). Those short term hands holding the shares make for very bumpy rides. However, having an investment business plan in place that systematically takes advantage of those bumps can be quite profitable. Best regards, Tom in WI