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

To: Winston Kim who wrote (3669)	6/22/1998 1:03:00 PM
From: Joseph E. Caiazzo	Read Replies (3) \| Respond to of 6565

Winston: You might be right...time to short. The stock got "Capped" today because of the Capiello recomendation on Wall Street Week last Friday night. But he didn't have the advantage of seeing this mornings NY Times, (page D1) which stated that IBM is now selling Communications chips that are much faster than the present CMOS technology. The new chips are made from a thin layer of Germanium over silicon, are much faster, hence use less power and may reduce power consumption by up to 50% in portable devices. IBM is shipping in volume to Hughes, Harris, National Semi, Northern Telecom, and Tektronix. "IBM is assembling the technologies that will allow it to pounce on the communications industry" said G. Dan Huchenson of VLSI Technologies (the research firm, not VLSI the semi co.) I know that vlsi today has great designs. But honestly, how long can vlsi continue to hold a ledership position in the wireless field against the R&D budgets of IBM, Lucent, Intc and the other giants? Especially now that IBM has the technology to mfg'r. faster lower power chips. Well the next two quarters should be OK, but I'd be very careful thereafter. The co's best option is to sell out to a larger rival. I think in their hearts vlsi mgt agrees with me as I didn't see any accumulation by insiders during the recent trough in the stock price. Fair disclosure...I sold all vlsi today into the rally. JEC