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Technology Stocks : Actel [ACTL] -- Ignore unavailable to you. Want to Upgrade?

To: Tom Todd who wrote (564)	8/24/1998 10:52:00 PM
From: kash johal	Read Replies (1) \| Respond to of 674

Tom, I think this is a pretty good deal for a number of reasons: 1. They get to try out the GF products in the market without paying too much up front. 2. The GF technology still has to be proven out on the 0.25 micron process. Why pay big bucks up front when it's not clear if the product will be out sampling in Q4. And as you know the software issues are significant with these large FPGA's and the GF architecture has low granularity (so it will be harder to route) and I am sure not all kinks on P&R have been worked out yet. I doubt if this will be significant dollars to ACTL till Q3/Q4 next year. So if it is a success they will buy GF (at a much higher price than todays). However if the technology takes time to pay off I suspect that GF will run out of money and they should be able to pick them up for less than current stock price. This is a good deal for ACTL but a questionable one for GF IMHO.