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

To: John Ritter who wrote (3151)	3/12/1998 12:34:00 PM
From: DanZ	Read Replies (2) \| Respond to of 6565

John, Listed below are the earnings for VLSI the last four quarters. Mar: 19 cents Jun: 31 cents Sep: 42 cents Dec: 45 cents Earnings last 4 quarters: $1.37 Stock price: 18 PE based on trailing earnings: 18/1.37 = 13.1 First call has an expected five year growth rate of 22%, giving VLSI a PEG of 13.1/22 = 0.6 Based on the FY 1998 earnings estimate of $1.02, VLSI is trading at a PE of 18/1.02 = 17.6 and a PEG of only 17.6/22 = 0.8. The stock is also trading at only 1.3 x sales and 1.7 x book. These are very low numbers for a high technology company that is expected to grow at 22% per year Anyway you slice it based on fundamentals, the stock is very cheap. The stock is rallying as we speak, currently 18 3/16 x 18 1/4 and the calls that I bought earlier today are now bid 7/8. The last time I felt this strongly about a stock was when I had 10,000 shares of IRF at 11 last year. The stock was sitting at a 52 week low and I kept the faith. I later sold the stock between 15 and 17 on it's way up to 22. Got out early, but made nice money on it. Good luck to everyone, Dan