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

To: Joseph E. Caiazzo who wrote (3184)	3/17/1998 9:13:00 PM
From: orkrious	Read Replies (1) \| Respond to of 6565

Joseph, how long have you supposedly known about TXN being a second source. You were a raging bull as short a time ago as four weeks: exchange2000.com There is always the possibility of VLSI losing some of their ERICY business. However, as recently as two weeks ago, the Robertson Stephens analyst who upgraded VLSI said he had talked with VLSI mgmt and was convinced this is only an inventory correction. I doubt there is any lower to go. For the past few days, my Level II screen has shown most of bigger market makers buying. Prior to today, MLCO was a voracious buyer (they were the one making positive comments today) and GSCO was at least on the bid as much as the ask, which was a big improvement from the descent from 20 when they were huge sellers. Jay

To: Joseph E. Caiazzo who wrote (3184)	3/17/1998 9:38:00 PM
From: Maui Jim	Read Replies (3) \| Respond to of 6565

Joe, Most of ERICYs handset chips are custom ASICs rather than VLSI standard products. A new design which VLSI and TI were both going to produce was delayed, and Ericsson decided to continue using an older VLSI chip. This is what triggered the rumor about VLSI loosing the ERICY account. Ericsson and VLSI will continue their close relationship as long as VLSI continues to innovate in wireless handset chips. I was once told that Ericsson pays less for their ICs from VLSI than it would cost them if they bought the whole company. Ericsson will continue to source chips from other vendors, but VLSI will have two new major wireless customers when they start shipping the CDMA chips (which Ericsson doesn't use). The only way the current stock price is not a screaming buy is if ERICY stopped all VLSI business, and that is extremely unlikely... Jim