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

To: E.J. Neitz Jr who wrote (4659)	10/14/1998 9:18:00 PM
From: Maui Jim	Respond to of 6565

Ultimatley there are just TWO reasons for the poor performance we have seen from VLSI this year: 1. Reduced sales to Ericsson - This was a textbook case of what happens when a company is overly dependent on a single customer, and that customer decides to scale back orders. It won't be until 99 that new handset customers begin to lessen the Ericsson factor. The same thing happened in the past for VLSI with sales to Intel and Apple. Ironically sales to both of those customers have recently picked up. 2. Overall weakness in semiconductors - On this factor I believe the company has handled it about as well as can be expected - Reduced headcount and expenses, and light a fire under the sales groups. There are anecdotal indications the market is finally turning around; If so, VLSI is well positioned to benefit. VLSI stock is priced as if the company were losing $2-3 per share. Instead the company is performing break-even during a difficult period. Other semi stocks with much worse problems are selling at P/S and P/B over 1. A similar valuation would put VLSI in a range of $14-20. I stand by a prediction of $2 earnings in 99 and $50 share price. JB

To: E.J. Neitz Jr who wrote (4659)	10/14/1998 9:24:00 PM
From: orkrious	Read Replies (1) \| Respond to of 6565

Edward, I agree with you completely. There was an absence of professional presentation. It was as if there was no cohesive plan for presenting the future in the best light. Jim, I am not going to be surprised if Gruntal throws in the towel. They have been a bull so long, and this was not very impressive. I also noted that other than Prudential, there were no other analysts from major houses listening. This was particularly telling, and things really can't get any worse. Given their prospects and the fact that they are selling for cash, you wouldn't think that there is much downside though. I'm certainly not bailing. Jay