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

To: Linda Kaplan who wrote (5266)	2/26/1999 10:11:00 AM
From: OldAIMGuy	Read Replies (2) \| Respond to of 6565

Hi Linda, I can't imagine this company being purchased for less than twice Book Value, but well, here we are with a firm offer at about 1.5 X BV. If it were priced to have followed the NASDAQ Comp. for the last 100 weeks, the price would be $34, just for fun. Here's what it would have looked like: techstocks.com With the stock trading so far this AM at above $15, those PUTs should be secure. Best regards, Tom

To: Linda Kaplan who wrote (5266)	2/26/1999 10:12:00 AM
From: DanZ	Read Replies (1) \| Respond to of 6565

Linda, I'd watch 15 closely. This was major support last year, and when it failed, the stock tanked. Even though VLSI is back above 15 only because of the buyout, I still have to put faith in the chart which doesn't care why a stock moves up or down. If 15 fails to hold, I think it could mean that Stein is doing his dirty work again. The stock should not be trading $2 below a cash offer that expires in a few days. It is clear from my reading of the offer that Philips management doesn't want to give VLSI much time to either accept or reject their offer. There's only one possible explanation for the stock trading at 15 3/8 right now. Investors are discounting the risk that Stein and the Board won't accept the offer. If 15 holds, all is well; otherwise, I'd bail. BTW, the big pressure on the stock so far is coming from Instinet. The offers there are in the 30k to 40k range. Those aren't retail orders...not that it matters much. It's just not much fun going up against professional traders and institutions with that much stock to sell, at least in the short term. Those guys can turn from sellers to buyers in a heartbeat though. Good luck to you and all longs. Dan