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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 (4942)	12/9/1998 9:40:00 AM
From: BOB WALKER	Read Replies (1) \| Respond to of 6565

Well, I hope you will be able to break even or make money soon and I'll be laughing all the way to the bank.

To: Terror who wrote (4942)	12/9/1998 10:02:00 AM
From: otter	Respond to of 6565

Marcie, I just gotta say: CPQ: Only recently has CPQ risen above its trading channel. I first took a position in CPQ well over a year ago at 34 and got trapped for about six months. The only reason I made $ with it until recently was because I began trading within the channel. Until recently, CPQ was not a very good investment - and the recent rise is based only on expectations - not actual performance. LU is trading at 56 times earnings. MSFT: 58x earnings. GE: 33x (and up a grand total of 21% since the beginning of the year). These can only go up in my opinion if they continue to increase their earnings at historical rates - a condition that they don't always control. I'm unwilling to make that bet as strongly as others seem to be... VLSI on the other hand, is trading at 21x earnings. If it were to rise so that the PE ratio were just equal to GEs, well the math is easy - and the hot air is already wrung out of the stock's price. It seems to me that in this era, there isn't (and hasn't been for a while) a focus on fundamentals..... A mistake in my opinion. If (when) a blowdown happens, all will be punished. Some more than others. I happen to believe that those with high PEs have greater vulnerability than others. I also think that VLSI is vulnerable, but at these levels, downside is less than upside. Not so with GE, CPQ, LU, MSFT, and more.