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

To: slob who wrote (1264)	3/9/1998 2:18:00 PM
From: David Einstein	Respond to of 4710

FWIW, VTSS was the #1 holding of the Fidelity Select Developing Communications fund as of 9/30/97. BUT... as of 1/30/98, it is not even in the top 10. Food for thought.

To: slob who wrote (1264)	3/9/1998 3:14:00 PM
From: gda	Read Replies (1) \| Respond to of 4710

slob, there is only one type You are right. I am a technologist. I am very close to Vitesse these days but I am not an insider. I also have an MBA but it sure does not help me in deciding the value of one stock. To my engineer's mind, there is only one value to a stock and it is what it trades for. When we say it is overvalued, it means (to me) that it will eventually go down. "On the Financial side we have $1.5B riding with VTSS AND a lot of growth / technology fund managers with very sick looking portfolios that need some spicing up alla VTSS. These financial type will need to see VTSS miss its numbers OR for lots of Insider selling to start before it falls off their radar screens." Well, this is the whole point! with gross margins being squeezed, with costs mounting, with external pressures on the semiconductor Industry as a whole - Vitesse is going to show weakening. What will your financial wizards do then? "I'd really like to hear you respond to the Financial side of the valuation equation because I believe that this market is driven more by the excess money flowing into funds than by any realistic "return on investment" " I call this a much simpler term: "speculation". You are saying, I think, that the price people pay for VTSS has nothing to do with what they think it is really worth long term, but rather, what they think others will be willing to pay for it short term. Fine. What I am saying is that for VTSS, it has worked long enough, and it is time for a correction towards the long term value, which IMHO is near $25. I am still short and it is getting better today isn't it? regards, gda