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Technology Stocks : LSI Corporation
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To: uu who wrote (14763)9/4/1998 3:05:00 AM
From: rairden   of 25814
 
My last communication with Gruntal was Aug 18,
when they were perfectly happy to encourage a commitment of new money
into LSI, just before the earnings warning. Their most recent analysis
from Donaldson Lufkin Jenrette, which Gruntal distributes on its own
letterhead, was dated July 23 and reiterated a "Buy" recommendation
with 12-mo target of $33. "We believe the current valuation ($20) is
attractive and discounts all of the negative information on the company."
"...the stock is particularly suitable for value investors."

The individual who wrote that report wisely chose to remain anonymous.

Not so fortunate were Mona Eraiba and Vincent Benedetti who signed their
names to Gruntal's August 10 "Investment Research Morning Comments."
Headline "LSI Logic -- Reiterate Strong Buy." 12-mo target $40, suitable
for the Agressive Growth investor. Rationale was completion of the
Symbios acquisition, viewed as a positive. "On a valuation basis, the
stock is inexpensive and we would use current weakness ($20) as a buying
opportunity." $40 target based on 23.3x multiple to $1.70 1999 EPS estimate.

I don't know how much "analysis" really goes into these reports. There isn't
much detail presented. Looks like just guessing with the same public
information and obvious economic trends that we are all aware of.

Reply #14458 (Carlson) reported the more recent Gruntal downgrade and
revised estimates to $30 target and $1.45 1999 EPS. I haven't seen anything
new in print yet from Gruntal. I'll ask.

I am seriously considering trimming my LSI holdings by 10 percent at tomorrow's
open, and continuing on a biweekly basis down to 50 percent before the Oct 22
earnings announcement. Taking my losses now to avoid the Christmas rush.

Got on this train going the wrong direction. People say it will stop and
turn around soon, but lately there is concern that it might be on its final run.
But geez, are there any trains going the right direction?? And are they going
as fast as LSI might if it finally turns around??

(I keep hearing "All Aboard" over on the Cisco and Lucent tracks.)
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