I am replying here to your LSI question on the APM
thread. At its current price, LSI may have bottomed out.
However, it is going nowhere until the current quarter
is over. Furthermore, the semi sector is undergoing a
major correction, so I am waiting on the sidelines.
There is really no rush to jump in. In general, although
I like LSI as a company, I like even much better all
companies in the mixed-signal ICs or networking electronics
business. Who knows? When the carnage is over, there might
be some great deals on fine companies. For example,
PMCS has weakened lately, and if it cracks, one would
have to give it a serious look.
In general, I like much better the high design content
high margin (often fabless) sector of the IC business than
the fab intensive sector. Because of its fab costs, LSI is
in the middle of the range.
Another general observation is that companies that bottom
out rarely start rising back up right away. They usually
spend a few months constructing a base and undergoing an
accumulation phase. Thus waiting for a while is probably
the best way to handle LSI right now. |
