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To: thomas hayden who wrote (14587)	8/26/1998 10:09:00 PM
From: BWAC	Respond to of 25814

Thomas ". If they were losing money I think the stock would trade down to book value. As long as they are making money there will be a small premium. " I submit VLSI as a contrary example to the above statement. Book value 12 stock price 11. Price to Sales .80 Trailing earnings of 1.18 14 cents expected earnings this quarter. 7 bucks in cash per share. And a recently announced 2 million share buyback which is 5% of outstanding shares. All for 11 bucks!!!!!!!!!!!!!!!!! Simply put this market doesn't give a hoot about value, underlying book value, price to sales, future earnings potential, etc. If its a semiconductor or midsized tech just sell. Don't think just sell. Don't analyze, Don't look at the financial statement, Just Sell. Sounds kinda stupid doesn't it? So where did all my money go the last two weeks. Too stupid people???? Obviously they knew more than I did. And thats why I sit with massive losses in stocks that looked cheap, at 60% plus off their highs, based on the financial statements.

To: thomas hayden who wrote (14587)	8/27/1998 12:13:00 AM
From: DanZ	Read Replies (3) \| Respond to of 25814

Tom, <If they were losing money I think the stock would trade down to book value. As long as they are making money there will be a small premium.> I said the same thing about IRF and VLSI. IRF has a book value of 7.75 and it closed at 5 5/8 today. The stock has been trading below book value for almost 2 months. VLSI has a book value of 12 and it closed at 11 1/8 today with a low of 10 7/8. Both of these companies are making money, albeit not as much as in previous quarters. The book value of a semiconductor company can be deceiving because the value of a fab depreciates faster than they show on the books. Also, the value of inventory might be inflated. However land can be worth much more than they show on the books. You have to look very closely at the balance sheet before you can figure out what the "true" book value is. NSM is also trading below book but they are losing money. Investors don't seem to care about book value when they push the sell button. The main problem that I see with semiconductor stocks right now is that there aren't enough bidders and if a seller wants out, they have to move the price down. There doesn't seem to be a big conviction to sell, as can be seen by the low volume, but people sell when they see their stock going down and there just aren't enough bids to support them. We need a change in sentiment to get these stocks moving up again but I think the SOX will have to test 226 and bounce before we will see many bids on these stocks. Dan