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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Billy Joe who wrote (2368)	3/3/1999 5:09:00 PM
From: Scott Kessler	Respond to of 3818

The PMCS sell-off has been overdone. The stock's now down some 19% w/ no news from/change in the co. Yes -- fears of a PC demand slowdown (which have been exaggerated after people have perceived a normal Q4 to Q1 sequential rev. decline) & the COMS rev. shortfall preannouncment have worried investors. I added to my position today after speaking w/ a co. rep about PMCS' exposure to COMS as a customer. Only 2 cos. contribute 10% or more of PMCS' revs. -- CSCO & LU (w/ ASND). Co. has 100 customers -- COMS is just 1. B/c most of COMS products are in low-margin, closer to the PC network elements, the co. isn't a big PMCS customer. Hopefully smart analysts like Elias Moomsa will tell their clients that it's alright to buy this stock, which now a great value play on broadband -- trading @ 35x consensus '00 estimate w/ 33% anticipate l-t EPS growth rate. No joke.

To: Billy Joe who wrote (2368)	3/3/1999 6:01:00 PM
From: Trader Dave	Read Replies (1) \| Respond to of 3818

Billy Joe: Don't get me wrong, my feelings about pmcs fundamentals are unchanged. i think the story is fabulous longer term. But if last year's stupid low was 24x current year earnings, there's no reason this year's stupid low couldn't be the same. My objection was to buying on margin. yes, i agree, it's a reaction to 3com (commodity modems and NICs) and to pc issues, but you know how limitless the stupidity of the institutions can be when they want to head for the exits.... willing to buy more, but not yet. TD