Hello Andreas,
I've traded LSI over the years. I got attracted again at the 14 level, buying more at these levels. LSI and VLSI are trading close to book value, LSI is still making money. I have to believe we are at bottom unless one thinks LSI is going out of business - I don't believe that to be the case. They have quite a library of ASIC designs, and I think Symbios will help them in the long run. That said, all these stocks will be trading vehicles until the market senses a semi recovery. Some smart folks on the AMAT thread think the bottom will be this fall (for these stocks). Either trade LSI for a couple of points up and down, or hold for the long term and make the big bucks. When things get rolling, LSI should be a four to five bagger in my opinion. I really don't see LSI going much lower unless this becomes a 1974 bear....
Best regards,
John
PS - I also think the possibility of a takeover becomes more likely at these levels. Last I looked, LSI's market cap is now around 1.7
billion. Even with a healthy premium, LSI could be bought for relative pocket change by one of the majors interested in the ASIC business... |
