Dear SFSPIKE,
At $34 1/8 it closed today, if you want to win more than a bowl of pho, shorting a couple thousand shares of LSI will certainly make your year when LSI hit below $30, you will be soooo rich when it hits $25 (a 9 1/8 point gainer !). But I would recommend that you also buy some long-term $40 calls to cover yourself ...
After being with the company for many years, I have seen the bad times of the industry and LSI being affected. I have lost most of my mathematics calculation capability (age is certainly acting up + my singlehood ... sigh !) - but what would you say the grow rate would be if, say, a company of 1 1/4b in 1996 growing to 5b by 2001 ?
I agree with you totally that those MMs know nothing except ganging up to beat up a company's stock price. The semiconductor industry in 1996 was down from 151b to 137b (a 10% decline), some company was only down some 2% and they took the stock price down from the 50's to the 20's. Please then bear with me to finally 'flare out' upon your comments of 'LSI is a sell ...' - I thought of you being one of them who knows nothing about LSI ... , and went ahead to risk my neck to share with you what I see here of all the positive things.
With your help of the calculated grow rate, please then share with me what do you think of the fair stock price should be ?
Thanking you in advance, :-)
David Chang
P.S. : BTW, if it is not too troublesome for you, please share with me your formula of calculation (straight-line, compounded, best-fit, expodential ... ???) Thanks a million ! :-) |
