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Technology Stocks : LSI Corporation

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To: Proud_Infidel who wrote (23687)3/5/2001 3:09:38 PM
From: sea_biscuit  Read Replies (1) of 25814
 
Do you really believe that LSI will not surpass $20 within 4 years?

The problem is, you are looking at only the "returns" side of the equation. How about risk? How much will this stock be valued in the absence of earnings? My guess is that it will be around 1 to 1.5 times revenues. Keep in mind that revenues are decreasing. Even if you assume that they will bottom out at $5 a share, we are looking at downside price targets of 5 to 7 1/2.

You are saying that will never happen? Never say never. People who were so very sure that CSCO/MSFT/INTC will never decline more than 20% or 25% from the highs are shell-shocked right now.
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