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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (2458)	4/9/1999 4:54:00 PM
From: Robert Schwartz	Read Replies (3) \| Respond to of 4710

Having owned VTSS most of the past 3-4 years (although not currently), I have noticed these guys almost always report $.01 above estimates. They have done a masterful job managing the streets expectations and always beating them slightly. My speculation is that, like me, the market is no longer seeing $.01 above expectations as a surprise - it is consistent with almost every quarter VTSS reports. The stock probably rose to an "overvalued" 59 during the week in speculation that VTSS profits would be $.02 to $.03 above consensus - a true surprise. Also, I believe that like many of you, the market was looking for a split. Let's not forget that the stock closed last Friday, 4/2, at 51 and some change. In other words, this stock is unchanged from a week ago. Let's look at the macro picture and not the one-day micro that brought VTSS to 51. Up until today, this stock had an unsustainable upward movement from 45 1/8 on 3/23 to 59 intra-day on 4/7 (approximately 31% in 2 weeks)!! This stock looks ripe for a pull-back to the mid 40's before continuing its "torrid" long-term growth upwards! As you all are aware, many stocks take a "hit" when earnings do not meet "whisper" numbers. Go VTSS!