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

To: DanZ who wrote (4050)	8/5/1998 12:16:00 PM
From: Clarksterh	Read Replies (2) \| Respond to of 6565

Dan - I guess our differences have to do with investing strategies. I prefer, as Tom puts it, long term capital appreciation. So: < For the sake of this discussion, let's assume that an offer was on the table at 28. VLSI closed that day around 20 so LSI was willing to pay a 40% premium over the closing price.> I don't particularly care whether the stock goes up (or down) 40% in a day. If it went up 40% tomorrow I wouldn't necessarily sell, since I think it has longer term appreciation potential. (although Stein does worry me) <Granted, the stock had traded over 30 a few months ago, but that's past history and has nothing to do with what the stock was worth that day. > Neither does the price of the stock on any given day have much to do with the value of the company. And it is based on the latter relative to the former that I make my decisions to buy or sell. As for the particulars of a deal with LSI, I would hope that we didn't merge with LSI. I've been watching them the last two years and they have definitely been underperforming VLSI except for the unfortunate inventory correction at Ericcson, Nokia et al. All too many mergers tend to de done not because the company really needs it, but because the officers and board scent a quick profit for them, or an increase in personal power. Clark PS I personally doubt the LSI buyout scenario given that LSI purchased another company at almost the same time they were predicted to buy VLSI. Maybe VLSI was in negotiations to be bought out, but I suspect not be LSI.