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

To: Michel Eftimakis who wrote (4350)	9/11/1998 2:54:00 PM
From: DanZ	Read Replies (1) \| Respond to of 6565

The volume in VLSI has been shrinking each day since Sep 3 when the stock first made the low at 7 1/4. I call this crash day and this is fairly typical action after a stock breaks down. Here is the volume and closing price for each day since then: Sep 3: 4,011,100; 7 13/16 Sep 4: 2,477,700; 7 1/2 Sep 5: 1,468,200; 7 13/16 Sep 6: 1,140,400; 7 7/16 Sep 10: 563,600; 7 1/4 The volatility has also declined, with intraday trading ranges of only 3/8 to 1/2 a point. When you consider that the spread is 1/16 to 1/8, it's been next to impossible to make money day trading this stock lately. My sense is that the decrease in volume coupled with the stock holding above it's 52 week low indicates that the selling is drying up and those wanting to "invest" (as opposed to "trade") in this company are accumulating. The next move on increasing volume will probably give a big clue on which way this stock is heading in the short term but I think the bias is towards higher prices. If it moves through 8 1/8, I think it will fill the gap to 8 5/8, and if it gets through 8 7/8, then I think it will likely trade to 10. On the other hand, if it breaks down below 7, it will once again be in no man's land and I'm outa here again until it stabilizes. I'm currently long at an average price of 7 13/16. VLSI has historically based for one to two weeks before sustaining a rally after breaking down so I don't think what it is doing is unusual. Dan

To: Michel Eftimakis who wrote (4350)	9/12/1998 9:06:00 PM
From: DanZ	Read Replies (1) \| Respond to of 6565

Michel, I seem to remember your telling me that you work for VLSI. Even if you don't you might have some feedback on the following. I understand that employee stock options granted after March 1996 will be repriced on September 14 (Monday). While events in Asia, Russia, the management shakeup, and the state of the semiconductor industry are all partially responsible for the decline in VLSI's stock price, the timing of the announcement on September 3 could lead one to believe that VLSI management wanted the price of the stock lower before the repricing. After all, why not make the announcement just before the repricing instead of after it. What do you think about this? Somebody on Yahoo, presumably a VLSI employee, posted that VLSI will make a positive announcement next week concerning an order backlog or something to that effect. Do you know anything about this or other positive announcements that are forthcoming? Does anybody else have any thoughts on these things? Thanks, Dan