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

To: Terror who wrote (4893)	11/20/1998 7:12:00 AM
From: otter	Respond to of 6565

Marcie, with all due respect, I think you are much too pessimistic. I've posted reasons for optimism before. Without discussing market size, specific products, or other nuts and bolts that affect a company on a relatively long term (more than a year) basis, one bears repeating and a couple more need to be added: 1. VLSI is currently selling for roughly its asset value. The closest competitor, LSI is selling for a little over 1.6 times asset value. INTEL is selling for (I'm going from memory here so I WILL be wrong) over 5x asset value. 2. VLSI's intellectual property (IP) is one of its largest real assets that isn't in the valuation. One way this is being expressed is in its software products that customers use to design new products. Right now, this is being ignored, but I think that with time, we may be hearing more about this. 3. VLSI's PE ratio is a respectable 19 or so (based on trailing earnings). Would you prefer it were - like Yahoo's? Intel is at 32 times earnings. MSFT is - well - you know. There are other reasons to be very optimistic that I've posted before. I, like many, got caught with my pants down with a long position I should have gotten out of. I should have loaded up when it fell to 7, but didn't. (Mea culpa: All indicators were headed south...) But, I have been accumulating. I have a reasonable long position in my 401k with an average cost basis of roughly 15. I also have (for me) a sizeable number of in the money LEAPS in my trading account. I'm really not in the habit of throwing my hard earned $ away. Now, barring any macro events, there is no reason in my opinion to think that the trend of the last few weeks that brought VLSI from 7 to almost 12 to reverse in the very short term, and I do believe that VLSI can be as high as 16 by year end (which - coincidentally - would bring the company's stock price relative to asset value in line with LSI's current ratio). I don't think it will be straight line; the market is again getting a little over-exhuberant; and so on.... but short term, the trend is there and in my humble opinion, the charts support the assertion. Moreover, it also seems to me that institutional activity is picking up... and so on. In fact, the more I think of it, the more I think that your number - 23 - can be reached sometime in the first quarter of next year... Longer term, all we need is a couple of good, well publicized announcements...