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

To: Doug who wrote (3462)	5/25/1998 6:48:00 PM
From: DanZ	Read Replies (2) \| Respond to of 6565

Doug, I'd rather not make any projections for VLSI's sales in the second half of the year but historically they have made more money in the second half than the first half. I'm expecting sales from Bluetooth related products to begin in the fourth quarter of 98 or first quarter of 99. In my judgment, Bluetooth products could substantially grow the market for mobile devices and all the negativism surrounding semiconductor and technology stocks will eventually fade. There's no doubt that semiconductor stocks are under pressure right now, but as I posted earlier the SOX is only 10 to 15 points from support. VLSI's lower weekly bollinger band is near 16 and that should provide some support for the stock. If it breaks 16, then there are a lot of weekly lows near 15 that should provide more support. There is a chance that VLSI will be dragged down to 15 if the SOX falls to 255 but I can't see it going much below that. I'll be watching the SOX and VLSI very closely next week. If the SOX goes down to support and VLSI holds 16, then I think we are in very good shape. If the SOX goes down and VLSI holds 15, then I still think we are in good shape but it will hurt a little more. And if VLSI goes much below 15, then I'll have to reassess my position. I have to admit that it's a scary time to be long VLSI but I think one should be buying on this move down. With regard to ALTR and ADI, those two stocks were trading near their upper weekly bollinger bands as early as two or three weeks ago and had more downside risk than VLSI which was trading near the middle of its range. ALTR looks like a buy between 30 and 31; ADI looks like a buy between 22 and 24.