Dexsil Corporation - Page 1

















                                 T.C. Memo. 1999-155                                  


                               UNITED STATES TAX COURT                                


                          DEXSIL CORPORATION, Petitioner v.                           
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 1349-93.                       Filed May 5, 1999.           


               William J. Doyle, Charles P. Reed, and Mark R. Kravitz,                
          for petitioner.                                                             
               Robert E. Marum, for respondent.                                       

                           SUPPLEMENTAL MEMORANDUM OPINION                            
               COHEN, Chief Judge:  This case is before us on remand from             
          the Court of Appeals for the Second Circuit in Dexsil Corp. v.              
          Commissioner, 147 F.3d 96 (2d Cir. 1998), vacating and remanding            
          T.C. Memo. 1995-135.  The Court of Appeals directed us:                     
               to make specific findings regarding the following                      
               questions:  (1) whether a hypothetical investor would                  





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