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

To: Trey McAtee who wrote (3426)	5/20/1998 7:12:00 PM
From: DanZ	Read Replies (3) \| Respond to of 6565

Trey, Nice job on your post. I agree with everything you said although it might be a while before the true value of VLSI is recognized by the market. Jim, I don't see anything in the trade to indicate that a takeover is imminent. Normally a stock will move a few days ahead of the news and right now, VLSI is just in a trading range and is following the other semiconductor stocks up and down. I agree with Trey, VLSI is not in the same category as MU, INTC, NSM, AMD, et al. Not only that, but at today's close, it is trading at less than 13 x trailing earnings and about 14 x next years earnings. Given the expected growth in VLSI's business areas, this is ridiculous and is likely the reason why the stock held support at 17 in March and why it held 17 again today. While nobody can predict which way VLSI will go, as a trader, or even an investor <g>, you have to buy stocks when they are at the bottom of their trading ranges. This is the least risky time to buy, although it feels like the most risky when you are in the midst of a downturn. I have been buying little by little the past two days and picked up more today at 17 13/16. If the stock breaks 17, then there is more support at 16 1/4 on the weekly chart. I sure hope it doesn't go there, but if it does, I'll buy more and stick it in my "long term account". Dan