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

To: alfred felsberger who wrote (3401)	5/15/1998 8:56:00 AM
From: E.J. Neitz Jr	Read Replies (1) \| Respond to of 6565

Asia Deterioration Intensifies--VLSI- 2nd Half 98 Improvement??????? IMHO, their 2H98 projections do not reflect the renewed prblems in Asia. Recently, financial news sources indicates the situation is deteriorating further. Also, bet any fall-out from India export rules can only hurt semi sales, and that's certainly not in their plan. Also, despite the recent DLJ upgrade, Zacks shows EPS downgrade on VLSI. My strategy is to slowly acquire additional shares, for the long term, but expect to hold off for a few months. Best wishes to all.

To: alfred felsberger who wrote (3401)	5/15/1998 2:35:00 PM
From: Maui Jim	Read Replies (2) \| Respond to of 6565

The question about the second half of 98 is a good one. I think management was basically saying that although we have not seen a pickup in orders as yet, they have always come and we have no reason to believe the normal seasonal trends are not still there. As to Asia, VLSI sells very little there, the problem is with customers such as Ericsson selling into these markets, and the inventory adjustments should by now be close to over. My take on it is the current stock price reflects these uncertainties, and is a strong buy only if this scenario is correct. Since the underlying demand for many of the products which contain VLSI chips continues to grow (Cellular, PCS handsets, cordless, set-top, DBS, games, etc.) and VLSI remains competitive, then we should see a pickup in business soon. Any early indications which become apparent I suspect would move the stock out of it's present trading range. Joe, the Malaysian fabrication plant is still proceeding on track.