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

To: ricky who wrote (3138)	3/10/1998 9:25:00 PM
From: DanZ	Read Replies (2) \| Respond to of 6565

Thanks for your concern Rick, but I'm going to pass on buying puts. I prefer to hedge by selling covered calls and I may or may not do that on this position. VLSI is oversold and the sentiment is very pessimistic. The open interest in the puts is also high compared to the calls. Add to this what looks like firm support at 18, and I like the stock even though it sold off late today. One positive note about the trading today is that the money flow was up even though the stock closed near the intraday low. In reviewing the tick chart, there was more volume on the way up than on the way down. If the stock gets to 17 3/4, I'll start to worry and if it gets to 17 1/2 I'll really start to worry. Until then, I'm going to be patient and see how it plays out. BTW, VLSI named Scott Parker as VP of their new ASIC business unit. Margins are very high on ASICs and VLSI's focus on that new business unit could be one reason why the stock is holding here. The stock has already priced in no better than 11 cents this quarter and I think investors are already looking ahead a few more months. www1.newsalert.com Dan