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Technology Stocks : LSI Corporation

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To: Jock Hutchinson who wrote (19633)	8/7/1999 12:27:00 AM
From: DWB	Read Replies (1) of 25814

Jock, just as a point of clarification... "12. Given the reluctance .... The growth potential of CDMA is widely acknowledged and reflected in the P/E multiple of over 100 that is afforded QCOM." QCOM has trailing 12 month earnings on the order of $1.75 (excluding recent charges for the sale of their infrastructure division and reorganization), so it's conceivable that on a TTM basis you could postulate a PE close to 100 (despite what Yahoo! might show...). But, if you look at this FY (ending in September) you're looking at the better part of $2.50 (subject to upward revision), and next year's earnings could be anywhere from $3.25 to ???? (my guess is closer to $4/share). This puts the current PE based on future earnings at no more than the mid 40's, which is extremely undervalued IMHO (based on the growth rate). DWB

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