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

To: Beltropolis Boy who wrote (2093)	12/14/1998 8:17:00 PM
From: MoonBrother	Read Replies (1) \| Respond to of 4710

Obviously everyone has noticed the price move between VTSS and AMCC in the past two days. While VTSS has moved to as high as $47, AMCC moved down to as low as $30. To me, this situation looks a bit ridiculous now. If you have compared VTSS and AMCC's trading pattern in the past month or so, you would have noticed that AMCC has been consistently trading at about $3 ~ $4 discount to VTSS. As matter of fact, most of time AMCC has been a bit more stable than VTSS in terms of less volatility. Although these two have completely different technology, their business models look almost identical. They are equally doing well in the same business sector. So far neither has caused meaningful threat to the other's business. I would like to think that at this time the demand for their products is so strong that both of them will do well for at least couple more years before one side starts to generate meaningful threat to the other. Now why all of a sudden AMCC dropped as much as $10 while VTSS went up to as high as $47? What has changed in the past couple days? The answer is NOTHING!!! That's right, none what so ever has changed in both sides' fundamentals that caused almost $13 price difference as of the end of today. Sure you may say that AMCC got downgrade from analyst David Wong. Sure you may say that VTSS got boost from being added into NASDAQ 100 index. But to me, none of these two reasons showed any fundamental changes to VTSS and AMCC. What they've indeed generated, is an excellent opportunity for us to buy AMCC at an unbelievable stealing price!!! Think it as an excellent Xmas gift from Mr. Wong! I have sold my remaining 1000 share of VTSS today at $46, and bot 1500 shares of AMCC at $32. The extra 400 shares were given by Mr. Wong, and I thank him for giving me the gift!!! My guess is that as soon as the market completes the current correction - perhaps as soon as on tomorrow or Wednesday, we shall see AMCC starts to quickly recover to up $30 level. Perhaps two weeks later, AMCC will move back to $39, and VTSS moves back to $43. We will once again have that harmonious $4 difference. Nobody will be able to notice that just couple weeks back we had an opportunity to buy AMCC at low $30!!! PS, read David Wong's complete reports about AMCC on AMCC thread. Good luck and Happy Holiday! MB