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

To: munsters who wrote (4927)	12/4/1998 9:18:00 AM
From: Ram Seetharaman	Respond to of 6565

Sure hope so! Dozen upgrades by the end of January will go a long way for 1999!

To: munsters who wrote (4927)	12/4/1998 11:01:00 AM
From: otter	Read Replies (2) \| Respond to of 6565

Volatility? You want Volatility!!?? BTW. I've also bought and I've sold INTC, TXN, and others... also. VLSI's beta is 1.6. In the first week of October, it was selling for as low as 50% of its asset value, and has doubled in price since then. VLSI trading has averaged recently over 1m shares per day, and according to Zacks, there 10 analysts who follow the company. (INTC has 34). If you look at cboe.pcquote.com Active enough for me... If I would have bought the options I now hold when VLSI was selling at 7, a roughly 75% increase in the price of the underlying issue would have yielded a roughly 125% increase in the option price. Going forward, a roughly 50% increase in the price of the underlying issue should equal a roughly 100% increase in the price of the option with little downside risk. It's volatile enough and widely traded enough for my purposes. Moreover, VLSI is one of a group of companies in this sector (TXN, MU, LSI) who have recently been upgraded, and is benefitting from those upgrades - add changing sentiment to a few wins and I think that a decent recovery in a relatively short period of time is a given unless macro events intercede. I don't agree with you that this issue is not actively followed. The only downside is the spread between buy and sell. As a percentage of the option price it's high - reflective of the relatively low volume and the relatively low price.