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Technology Stocks : Xilinx (XLNX) -- Ignore unavailable to you. Want to Upgrade?

To: Stefan who wrote (2347)	5/28/1999 2:10:00 PM
From: Sherman Chen	Read Replies (1) \| Respond to of 3291

The existing estimates of XLNX growth rate don't justify the price going much higher. However,if what Lucinos and others are saying is true about demand for Virtex and other products, and yield problems being solved, then there will be some earnings surprises coming and growth rates adjusted upward. I tried to go long again at 40 the other day but didn't hit my limit. Still a lot of time until next earnings, so I'll wait for other opportunities to get in, hopefully lower than today's prices.

To: Stefan who wrote (2347)	6/1/1999 6:35:00 AM
From: Robert Scott	Read Replies (1) \| Respond to of 3291

They are projected to grow at a 25% rate. Based on an estimate of $1.22 X 25 = $30.50. Now, the fact that its business is expected to grow at this rate for the forseeable future, it will not trade at a multiple of 25 but rather a higher multiple. This is what you are questioning. However, at this point it is undisputed that the chip business and especially the communications chip business is healthy and growing nicely. As such, I am investing for the 3 year term. The price may go down from here but I'm betting it will be much higher in 2002.