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Technology Stocks : LSI Corporation

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To: uu who wrote (21921)4/16/2000 1:12:00 AM
From: E_K_S  Read Replies (2) of 25814
 
Hi Addi: I agree with your statement "...with productivity increasing at an exponential rate... AND ...the economy is becoming dependent at an exponential rate on technology..." as key to why we have and will continue to see premiums in stock prices for companies that deliver these "new economy" products or services.

My Dad is from the "old economy" (like Dippy) and I respect their experience living through the depression and all BUT their perspective is from the old industrial revolution time period 1940's-1970's (i.e. old economy). Our economy is benefiting from the HUGE productivity gains and efficiencies obtained from these new emerging technologies (starting in the 1980's with PC's and late 1990's with the Internet, microprocessors, ASICS, fibre optics etc.).

LSI is but one of the key companies that should benefit from this "new economy" as the old economy companies utilize these technologies to become more efficient and profitable.

For Dippy, I can site Ford Motors as an example. Their management is young and proactive and embracing this "new economy" theory. The company has established an Internet BtoB purchasing program which will cut over 35% of their overhead production costs in parts assembly. They utilize the newest computer chips in their automobiles to achieve the greatest fuel to power efficiencies ever. Ford has and continues to be one of the most profitable and efficient automobile manufactures BECAUSE it's management has adopted new technologies into it's production.

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LSI is one of these companies that continues to deliver new products to this worldwide economy that makes many of these main stream companies more efficient. IMO, this is why we are seeing the growth in many of LSI's different product sectors. I expect it to continue for some time too.

EKS
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