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

To: BWAC who wrote (5225)	2/23/1999 3:32:00 PM
From: DanZ	Respond to of 6565

BWAC, <On the other hand, maybe VLSI is the problem. For failure to leverage the earnings potential of these assets into a "more normal" market valuation.> I couldn't agree with you more. The ROA of VLSI is pitiful. A company can have gobs of cash, nice buildings and equipment that are fully paid for, and still not make any damn money. That describes VLSI. Management stinks, pure and simple. If they can't make any money with their current non-cash assets, they should spend some of that big pot of cash and buy some assets that will produce earnings growth. Maybe they should even sell some of their non-performing assets. This company needs a CFO who knows what he's doing and Stein needs to let the CFO make more decisions. VLSI has some excellent technology, but they are in dire need of redirection. IMO, this is the main reason why the stock is languishing. Still, I think it's worth the risk to buy the stock here because the downside looks fairly limited, especially when compared to many other alternatives in the market. Best to all, Dan