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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: lazarre who wrote (1594)	9/15/1998 7:42:00 PM
From: MoonBrother	Read Replies (1) \| Respond to of 4710

Merrill's Analyst's Latest Comment - We view the recent volatility in VTSS stock as opportunity to accumulate the shares. --------------------------------------------------------------------- 03:00pm EDT 15-Sep-98 Merrill Lynch (Investor Support) AMCALL VTSS NT SUMMARY RESEARCH SUMMARIES:Intra-Day Special Calls; VTSS; NT ML++ML++ML Merrill Lynch Global Securities Research ML++ML++ML RESEARCH SUMMARIES Intra-Day Special Calls; VTSS; NT Investor Support 15 September 1998 Vitesse Semiconductor (Vtss; $26 3/8; C-2-1-9) Sep98E $0.65 99E$0.83 o We believe investors are concerned about Tellabs difficulties impacting VTSS however only 3% of the company's revenues are derived from Tellabs. o Ciena and Tellabs together constitute between 5-7%, not a significant amount, in our opinion. o Tellabs difficulties appear to be centered on execution and are not a result of end demand issues. We think if there is any market shift in favor of Lucent it should not impact VTSS as the company sells to both Lucent and Tellabs. Lucent remains VTSS's single largest customer. o There has also been some concern regarding a potential decrease in VTSS automated test equipment. o The company stated that business will be up sequentially this quarter. We have factored a down sequential quarter into our model to be as conservative as possible. o After speaking with the company we continue to be comfortable with our SepQ EPS estimate of $0.19 and our FY98. o We view the recent volatility in VTSS stock as opportunity to accumulate the shares. o We maintain our intermediate term Accumulate, long term Buy rating. (J. Osha)

To: lazarre who wrote (1594)	9/16/1998 2:56:00 AM
From: The ChrisMeister	Read Replies (2) \| Respond to of 4710

"Aside from today's action, not sure what you mean by lower lows for VTSS." Sorry, I was mistaken if you look at more than just the last several days of action. The 9-1 intraday low was 24 7/16. I'd say we're in the process of testing that level. As my previous post suggested, I'm dubious about it holding. But your 100-day chart does make one want to believe in firm resistance @22-23, should we get there. That's where my buy order would be (though I'll have to sell something else I like a lot first). Taking out the low of two weeks ago and then rebounding could really set things up for a very nice intermediate-term (several weeks at least) rally, as it effectively shakes out the last of the weenies. It's a formation I've seen before, and it has a very high probability of predictability. Of course it's no fun for those of you who are already long, especially if you're buying power has been zapped like mine and everyone else's has. "That said, do you suspect that the price of VTSS would be different today if it were not for its linkage---right or wrongly---to Ciena and TLAB?" I honestly don't have much of a clue. I have no position in VTSS and have only been following it since about the time of the last earnings announcement. I'm sure those of you who have been following the company for some time have a much better feel on this than I do. That's why I'm on the thread - to learn the fundamentals from you guys. As a fairly diehard TA'er, I'd have to say the market's gonna find whatever news it needs in order to justify doing what it has to do. Anybody on the verge of selling or not buying will take whatever's handy as an excuse to justify their action (killing a buy order or putting in a sell), especially in a jittery market like this, even if the Dow is up rather nicely the last couple of days. I've found TA is good only in a very short-term sense, as a timing tool for entry/exit. Long-term, ya gotta go with the business, the industry, the management, etc., which all look excellent here from what I've been able to learn. Obviously I'm a very short-term bear looking for an entry point on the long side. ChrisMeister