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

To: Maui Jim who wrote (3657)	6/20/1998 12:11:00 PM
From: DanZ	Read Replies (2) \| Respond to of 6565

I came across an interesting speech on the TXN thread that Rich Templeton (a VP at Texas Instruments) gave in April. ti.com Even though the speech was given a few months ago, Mr. Templeton made several relevant comments about the markets that VLSI serves, namely the wireless, networking, and advanced computing markets. Here are some facts and opinions: Fact: VLSI is trading near it's lowest valuation in years. Fact: VLSI does not sell semiconductors that can be classified as commodity products and they have a leading position in several of their target markets. Many of the company's target markets are growing rapidly despite the problems in Asia. Fact: Analysts are beginning to see value in the stock and recently started upgrading it. Fact: VLSI has many lows on the weekly and monthly charts near 15 and the stock held there again on this decline. The dates when the stock tested and held 15 are Oct 96, Jan 97, Feb 97, May 98, and June 98. Opinion: We may be at bottom of the business cycle for semiconductor companies. Watch the SOX for an indication of this. It has been building a base near 230 and the lower daily bollinger band turned up last week. The lower monthly bollinger band is rising and currently stands at about 215. This provides long term support for the index and the monthly chart has a bullish pattern of rising highs and rising lows. Many of the shorts on this thread and on the Yahoo thread are shorting the stock because of what they perceive to be a decline in the fundamentals for VLSI's target markets. Everything that I have read indicates just the opposite and I think this stock will work it's way much higher over the next few months. The stock probably won't go straight up, but if the trend is up as I believe, it will be much easier to make money trading this stock from the long side than the short side. Along that line of thinking, I bought back yesterday most of what I sold earlier in the week and also covered half of my short position in the Jan 20 calls. Good luck to everybody. Dan PS to Joe K: Thanks for posting the clip from Wall Street Week. I'm not sure how much influence Mr. Capiello has on the stock, but positive comments are always better than negative ones. :o)