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

To: The Ox who wrote (1858)	10/13/1998 1:15:00 PM
From: Beltropolis Boy	Read Replies (2) \| Respond to of 4710

fwiw, looks like VTSS is part of this month's cover feature in kiplinger's. culled from the motley fool board. ----- "Makers of telecom equipment are breaking down the doors for Vitesse's chips," according to the cover story in the Nov issue of Kiplinger's Personal Finance. The article, Great Stocks on Sale, examines 11 strong companies for the next millennium that the writer belies [sic]are at bargain prices. Vitesse is listed as one of these "bargains" ($23/share when article was written). It reports that analysts are expecting earnings growth of 40% a year over the next 3 to 5 years - mainly due to expectations that the need for more and faster data links "is expected to double each year over the next five years." Since I'm not familiar with this company, it would be good to hear other Fools' opinions of the accuracy of this article...specifically the quotes from Jim Goff, manager of Janus Enterprise fund, who says: Vitesse's lock on the technology and the need of such giant customers as Cisco and Lucent give it a "near monopoly" and he adds, "I view Vitesse as an arms dealer to some of the most successful companies out there." As for challenges - the biggest one seems to be whether the company can meet soaring demand. Its new plant is on schedule for full production by the end of this year and "it could provide capacity to boost annual revenues to about $550 million over the next two years."

To: The Ox who wrote (1858)	10/13/1998 2:37:00 PM
From: MoonBrother	Read Replies (1) \| Respond to of 4710

Just compared BRCM and VTSS. Surprised by the huge difference in valuation of the two stocks. The two are basically the same on the earning side. BRCM earns 17c this qtr, and VTSS will earn 20c. BRCM's EPS for next year is 83c, the same as VTSS'. The projected earning growth rate for BRCM is 35%, while VTSS is 40%. But BRCM is trading at $70 range, while VTSS is only at $20! What a bargain for VTSS!!! They say that in the long run, Wall Street always even-out a stock's valuation. Let's say the two eveantually meet at the mid-point around $45, which will give VTSS a 120% gain! But BRCM will drop 40%. Let's hope the definition of "eventually" is within 6 months. Good luck! MB