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

To: Linda Kaplan who wrote (6514)	6/1/1999 2:46:00 PM
From: schlep	Read Replies (1) \| Respond to of 6565

Linda, i had the same thoughts and came up with the explanation that it is more entising to a current vlsi holder for Philips to buy shares on the open market at $21 (costing only commision) than for the holder to tender and be without the working capital for weeks to months. does this make any sense? -Schlep

To: Linda Kaplan who wrote (6514)	6/1/1999 2:51:00 PM
From: DanZ	Read Replies (1) \| Respond to of 6565

Linda, The buying at 21 could also be short covering from those who hoped the deal would fall through. There's no way to tell, but this is one more possible scenario to add to the things you already mentioned. I'm not sure if I understand the rationale for holding VLSI now. A higher deal is unlikely and there's a lot of downside risk in the unlikely event that the deal falls through. It seems like one is just tying up money in a security with a lot of downside risk and little upside potential. You mentioned GUMM. The stock has a solid base at 9 1/2 and I think a lot of good news is on the horizon. This is one my favorite buys right now from a risk/reward perspective. Best of luck to all, Dan