Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ram Seetharaman who wrote (6006)	3/27/1999 10:05:00 AM
From: otter	Read Replies (2) \| Respond to of 6565

The $64 question in my mind is not whether or not VLSI is acquired but when and how much. The debate on how much seems to be centering on two numbers: $20 and $25.... $20 in some measure due to the recent article we've seen... $25 (or so).... A month ago (was it then?), it seemed that April was way out there; and that in the enthusiasm of it all taking a position with options expiring in April would be a very safe position to take. And, I took a relatively healthy position on April 20s for the grand total of 1/4 each. The next day (shame on me) I took yet another position on July 20s at 7/16 and then doubled up right quick at 3/4. (I bought as many of July's as I had April's) Time IS the enemy on those April options. I've been through Due Diligence processes before. It isn't a daytrip; it isn't (or shouldn't be) a formality; and it takes (or should take) time to digest the results. So, in some regards, I viewed the news this week about PHG and VLSI coming to terms on a confidentiality agreement as having the effect of both EXTENDING the process and FREEZING the stock price at its current level for the immediate short term. The reason I viewed it in this away is that I don't believe we WILL hear anything official about any other offers until we first hear a new offer from PHG... which won't happen until the DD process has been completed... (Anybody can disagree with me here... I'm flying over speculationland) The long and short of this is that without any regard to the final price of a sale, I convinced myself that the chance of my April 20s expiring worthless had become substantial, and I dumped them yesterday - for 3/8. That I had a positive return was only a very small consolation. If I'm wrong about the time question.... well. Now, I have two more decisions to make... They are (1) Whether we think - based on ALL the information available - whether (a) a deal will be done by July and (b) the $ price; and (2) based on that, whether to (a) sell the July 20s, (b) hold with what I currently have or (c) buy more - and if so, what. I am going to be out of touch until Sunday evening, but am going to be spending an awful lot of time evaluating as much as I can lay my hands on. Any and all comments and thoughts would be VERY gratefully appreciated. (I consider My Jan 10s as the bedrock of my position, going noplace until this deal is resolved.)