Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Drake who wrote (1363)	4/10/1998 6:22:00 PM
From: The Ox	Respond to of 4710

It's very hard to say what direction the stock will take on Monday before the earnings release. I wouldn't let the TQNT announcement affect my position in VTSS. As someone recently posted, TQNT announced they missed earnings before last qtr's report and VTSS still came through with flying colors. We may get an additional run up before earnings as those less informed investors start to realize that all GaAs companies are not alike and you can't just pull one out of the hat because of the type of ASIC the company produces. We may get more of the ANAD and TQNT investors looking at VTSS. Having said all this, I would not discount TQNT as an investment. If TQNT gets hammered, it may be a perfect time to get some on the cheap. I do believe that to some extent ANAD, TQNT, AHA, RFMD and others should be lumped together since they are all competing mainly in the lower end of the GaAs spectrum. I firmly believe that VTSS stands out from the GaAs crowd. One example of why: TQNT had said they were going to attempt to take on VTSS's product lines by producing more higher end chips. The manufacturing problems that TQNT has referred to in their press release could be caused by their attempt at producing those high end chips. That attempt to compete directly against VTSS may be one of the reasons that TQNT won't be doing so well this quarter. ( I don't have direct knowledge of TQNT's specific problems so this is pure speculation on my part.) For all the talk about SiGe and other Silicon processes overrunning VTSS, I have yet to see any of this for myself. Talk about technology is cheap. Show me production quality processing and I will take notice. In fact, the more people take aim at VTSS, the more the company continues to impress. The GaAs process that VTSS has perfected is very complicated. This is the single greatest reason why I believe it will be quite a while before someone comes along and really gives this company a severe challenge. This is not to say we shouldn't be constantly looking at the technology horizon. We all need to stay abreast of the new chip processing concepts and practical applications. Maybe in six months, a year or 2 the competition will be gaining substantially on VTSS and we will have to rethink our investment strategy. All of this is just one investor's opinion and there are many who firmly disagree with my point of view. Good luck. Respectfully, Michael