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

To: Robert Schwartz who wrote (2142)	1/7/1999 8:28:00 PM
From: Immi	Respond to of 4710

book to Bill is 1.21. Naturally, next quarter is in the bag. telecom/datanetworking guided 10-12% projection in revenue for the next quarter. ate business is picking up. Quote 'extermely happy' with the datacom business... regards, immi enjoy the ride.

To: Robert Schwartz who wrote (2142)	1/8/1999 10:47:00 AM
From: Wizard	Read Replies (1) \| Respond to of 4710

Hi Bob. I was just trying to add a few data points rather than just ask questions and provide zero perspective. On to VTSS. Very good visibility and the stock looks set to make further gains this year. My concerns are based on the shareholder base and valuation at current levels. VTSS has been un-semiconductor like in its consistency. Book:Bill has been above 1.17 for more quarters than I can remember (at least the last 10). If they keep that up (and obviously make/beat the billings (sales) estimate), the stock can continue to appreciate nicely. Elias Moosa at Robby is using $.94 for CY99 right now so my previous guesses (without benefit of the call) were too low. Let's give 'em $1.05 for a stab in the dark guess at what upside might be. The stock is right now $47 1/8 which puts the multiple at 45x. Given VTSS's consistency over the last gazillion quarters, expectations have been set for continued consistency and this is partially built-in to the valuation now. I think this is deserved. I just don't think this leaves a ton of room and think the stock is just a solid long-term holding as it would tank on any speculation about a weak bookings quarter without much upside potential to current expectations. Net net, my opinion is that this stock will slightly outperform aggressive growth stocks in general but don't expect a whole lot in excess of this return over the next 6-12 months with the chance of a bookings blip the low probability outside wildcard. ps, I don't own VTSS at the moment but would buy it later on in the quarter if all is well...