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

To: DanZ who wrote (3113)	3/5/1998 6:27:00 PM
From: John Ritter	Read Replies (1) \| Respond to of 6565

Ricky must be shorting VLSI.

To: DanZ who wrote (3113)	3/6/1998 8:12:00 AM
From: Paul Verderber	Respond to of 6565

In defense of ricky, 12 is well within the realm of possibility. Over the past 10 years, the low end of VLSI's price-sales ratio has averaged 0.6 x sales/share. Value Line had been projecting sales per share of $18.15 (I don't know whether and how they have revised this), but this was assuming a 16+% increase in sales over 1997. Others on this thread have mentioned the variability of VLSI's performance--some years have had very good sales growth, while there have also been years with sales decreases. Nine year average sales growth has only been about 7%. If growth turns out to be only average and we hit the average low P-S ratio, we could easily be at 12. From a technical standpoint, we are at a very strong level of support, but if this breaks, next level is about 15, but 15 is not necessarily a strong level of support.

To: DanZ who wrote (3113)	3/6/1998 11:19:00 AM
From: ricky	Respond to of 6565

Dan, VLSI has a book value of 11 , 6 in cash. The PE is very reasonable at this price. VLSI sales and earnings growth has slowed dramatically. Inventories are building and the ASIC market is very competitive. It's very difficult to compete with LU, IBM and LSI Logic. The value of the stock looks good on paper (PE, cash, book value) but if your having problems selling your products the fundamentals will start to erode. I am considering purchasing LSI Logic at $20. I do not have a long or short position in VLSI. I like to see what's going on with companies that I used to own. Rick