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Strategies & Market Trends : Value Investing

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From: E_K_S	11/16/2004 11:50:00 AM
	of 78651

CEO CORRIGAN, WILFRED J. of LSI made a big buy of the stock (50K shares) in November at prices around $4.54/share (http://finance.yahoo.com/q/it?s=LSI). Also, the company announced yesterday their most comprehensive offering of Voice-Over-IP solutions, which is a growing emerging technology (http://biz.yahoo.com/prnews/041115/sfm016_1.html). Stock is a value play IMO based on their fixed assets specifically their company owned facility in Gresham Oregon. They have however a lot of goodwill on their books from prior acquisitions (almost $2.50/share) which is included in their current book value of $4.70/share. Expenses have been trimmed and they do maintain a positive free flow cash flow at the current sales levels. The value proposition is if LSI now has the product mix to accelerate sales growth in the future? The CEO seems to think so with his recent insider stock purchases. He has a very good record with his insider purchases over the last 7 years. I believe there were three instances over this period where his insider buys reflected the beginning of a company transition into several quarters of very positive sales and earnings. Disclosure: I have been an owner of stock since 1997 and have recently doubled my position this month with an average cost/share of $5 after I noticed the insider purchases. EKS

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