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Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: Spartex who wrote (3805)	10/2/1998 7:26:00 PM
From: Brian Diggle	Read Replies (1) \| Respond to of 5944

I agree, I won't consider adding to my position unless it falls below its cash value. At the rate were going this should take about a week!! Yours truly, Brian Diggle

To: Spartex who wrote (3805)	10/2/1998 9:05:00 PM
From: Adam Weiner	Read Replies (2) \| Respond to of 5944

Yes, but VLSI will have to spend their cash (or take on debt) for fabs to keep up with each generation of wafer technology, whereas ADPT does not (fabless). Plus, ADPT has an established franchise with strong brand recognition with market-share and IT mind-share leadership; in many respects, VLSI is just another capital-intensive fab looking for more chips to make to justify their heavy investments (fab capacity is the commodity of the 90's). In short, the two companies cannot be compared using the same valuation metrics.