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

To: Ed Nielson who wrote (5569)	3/7/1999 2:27:00 PM
From: lifeisgood	Respond to of 6565

All of a sudden, when we finally have some outside interest in this company, everyone is proclaiming what a great and growing business VLSI has and that the stock is worth so much more than...(fill in the blank). The truth is, Stein et al. were taking the stock into the sewer and have for some time with no regard to shareholders. VLSI has not been an attractive take over target as many claim. Otherwise, companies would have come to the table last year when it was trading at 7 (it appears that LSI, not Stein, nixed buyout last year). The Phillips offer is a fair one given that this stock has languished for so long and given incompetent leadership (e.g. BOD). My guess is that it will be sold for circa 20 and I can live with that and with the fact that Stein et al. are no longer able to ignore shareholders in the process of boosting/maintaining their own egos and power/control. Good riddance Stein-- ditto for the soon-to-be packing BOD.

To: Ed Nielson who wrote (5569)	3/7/1999 3:22:00 PM
From: Ram Seetharaman	Read Replies (1) \| Respond to of 6565

If Philips (or someone else!) pays cash for VLSI, then VLSI will become part of Philips and essentially be absorbed in their ocean. It will be difficult to measure VLSI's growth thereafter, since that company may restructure it and write off certain assets/values. On the other hand if a company buys VLSI with their own stock (and if that stock happens to be a growth stock!) then VLSI may grow with it. No one was calling VLSI a growth stock ten days ago, when it was trading around $ 11. That price was below the offer price of $ 13 when VLSI went public in 1983! After nearly 16 years, the stock has not performed at all and was a lousy investment for long term holders. Even if we get $ 25 for VLSI, it is still a lousy deal for long term holders. Bank CDs would have yielded better over 16 years!