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To: Dale Knipschield who wrote (14123)	5/28/1998 9:08:00 AM
From: Trader X	Respond to of 17305

Dale, When has ASYT not been a great buy? This stock currently has a PE of about 13, with a projected growth rate over the next five years of 25%, the earnings growth this year is closer to 30%. AV can tell you all the great fundamental things about this company, as he already has many times, but he can't tell you when the market will stop discounting the stock price like it is now. If he could, he wouldn't have been buying in the low 20s. Yesterday the stock came within a hair's breadth of it's 52-week low of 16 5/8. Is that the absolute bottom? Who knows for sure? I think the stock is a screaming buy at this price based on the fundamentals, and I'm sure AV will tell you the same thing. But if the markets tank, so will ASYT. TX

To: Dale Knipschield who wrote (14123)	5/28/1998 2:50:00 PM
From: Andrew Vance	Read Replies (1) \| Respond to of 17305

AV--I averaged down on both ASYT and PAIR for what it is worth. I never expected either to get this low so I feel foolish about some previous entry prices. However, the wax philosophically, I have played these roller coasters very well over the past months and have made out like a bandit at times. Therefore, the probability of my getting "a slight sunburn" was increasing with every success. The big picture is still bright but the short snapshot is not as rosy. As we all know, success is measured on a quarterly basis. Quarter 1 was successful for me and QTR 2 will also be successsful due to one specific trading cycle. Therefore, this fax paux will get swept under the carpet relative to other trades. Therefore, it is important that I point these two stocks out as timing errors. Smart trading would have exited and re-entered either now or slightly down the road. As far as being bargains, I think we are seeing the bottom here (a little lower than I really anticipated) for both of these stocks. We might see them scratching this area for a few days to a few weeks then start a sustainable upward motion to the low 20s in anticipation of the Fall rally. Tomorrow is the day for the xDSL installation at my house. I can hardly wait for my 512K speed demon. PAIR is a company whose time WILL come. Patience WILL pay off here. Trouble is WHEN. I also must commend you for the following excerpt. PAIR is a great value here (15-15 1/2). They have limited Asian exposure, have just announced a new line of value-added HDSL products, and since TELCOS must supply facilities on demand, they have to install these devices regardless of economic problems in the rest of the world. Buy PAIR for HDSL and pair-gain products......forget about ADSL for now.....HDSL will only become a hot product if and when the TELCOS so decide. Asian Flu and American Semiconductor facilities: An interesting paradigm that I am working on. The real winners SHOULD be MU and other DRAM/SRAM producers as they try to put the screws to the Asian competition. This comes via capital expeditures as well as improved efficiencies associated with advanced twchnology. The other winners are those companies that have been using foundry services to supplement their own manufacturing. They are either pulling starts in from these foundries to fill up the domestic fab area or they are negitiating better financial terms for future contracts. For specific companies we need to look first at the Fabless semiconductor companies and then those that rely on Asian foundries for external capacity. As you bring more starts back into your fabs, you lowere your internal wafer costs which increase your margins. you also recaptuire profits, margins, and bottom line earnings that are factored out of the foundry price of wafer production. Andrew