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

To: The Insider who wrote (3661)	6/21/1998 5:58:00 PM
From: Trey McAtee	Respond to of 6565

the insider-- sure, IBM is making a move into wireless, and the koreans and other asians would as well if they could afford to convert the fabs. the problem is, VLSI is an entrenched competitor with excellent products. IBM doesnt move well into new markets with established competitors. just have to see what happens. my money is on VLSI, at least for now. good luck to all, trey

To: The Insider who wrote (3661)	6/21/1998 6:05:00 PM
From: Kevin Hay	Respond to of 6565

<< Isn't reasonable to assume that another behemoth will soon target the same profitable field in which VLSI is now staking its future? >> I'd say it's a given. But I think this is one of the strongest points for VLSI. INTC was a large shareholder of VLSI and in a technology sharing/development deal. The INTC revenue was a huge portion of VLSI rev and VLSI still survived when INTC went after them. I think the INTC situation was somewhat unique in that VLSI was doing chips for mother boards (x86-someone correct me if I'm wrong) of which INTC was/is a virtual monopoly of. So, VLSI looses the biz and then there's no one else to supply these too. Talk about a scary time to own the stock. Now, ericy is VLSI's biggest customer and their biggest exposure to an INTC type move. but a) ericy is a smaller percentage of revs than intc was, and b) ericy does not have any kind of monopoly on wireless. So if they cut off vlsi, vlsi can sell elsewhere. The speed with wich vlsi can adapt to changes in the marketplace in addition to the growing uses of semi's is the reason I'm willing to be as long as I am right now. If I were short, I'd be betting on the japanese need to save face bringing down the whole market.., which isn't unlikely. My forecast is that this q's earnings almost don't matter and that outlook will be everything. And the outlook will be at least a somewhat positive in light of vlsi's increasingly cyclical biz. btw, has anyone heard how DirecTV is doing these days? cheers, -Kevin

To: The Insider who wrote (3661)	6/22/1998 4:19:00 AM
From: Ed Nielson	Read Replies (1) \| Respond to of 6565

Another "behemoth" is already in the field and has been for as long as the field has existed -- TXN. This didn't stop VLSI from gaining very substantial business with ericy, nor did it stop them from good design wins with other customers. There is a major difference in position from what Intel could do with chipsets and what anyone else could do with wireless. Intel is a virtual monopoly in the PC domain with a system that is essentially the same worldwide. Wireless communications is not at all the same market. First of all there are a number of different standards (GSM, CDMA, PHS,...). Besides the behemoth TXN there is also Motorola, Lucent, NEC, Siemens, and others in the game. No single company has a firm hold on the market as Intel does in PC's. If they did they would have already played their card. VLSI is in a good position as a silicon supplier (ie, it's hard to imagine ericy buying chips from Motorola or Lucent who are their direct competitors in the portable phone market). Anyway, now we're waiting for Q2 results, and as has been said already, it seems that Q2 doesn't matter much for the stock price, as what people will be wanting to see is the outlook for Q3, Q4, and beyond. Long on patience looking for a good end of the year..... Ed