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Technology Stocks : LSI Corporation
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To: uu who wrote (23788)4/4/2001 3:02:23 PM
From: E_K_S  Read Replies (2) of 25814
 
Hi Addi - I have noticed that the actual assets for many of these semi companies have a high book value relative to their current prices. In particular those with foundry production seem to be quite cheap relative to their book value.

Fabless Chipmakers See Foundry Use Growing
(04/04/01, 11:40 a.m. ET) Semiconductor Business News
(http://www.techweb.com/wire/story/TWB20010404S0004)

What do you think of Chartered Semiconductor (http://biz.yahoo.com/p/c/chrt.html) vs LSI? I believe LSI may have a more vertical market business and their per unit margins maybe higher for their specialized components.

However, Charter Semi has a high book value and more cash per share than LSI. The two company's prices over the last 18 months track together.

Is it worth the premium to buy LSI for their higher product margins? Perhaps the move is to go with value so if this semi cycle is longer than expected, the company with the most cash and flexible manufacturing set-up can survive the slowdown better (ie. Charter Semi).

Maybe, the wise investor will just wait.

I was one of the lucky investors to pick up my original LSI in October 1998 at $11. Now I have 1000 shares but my 9 bagger has come round trip and is just a 3 bagger. I am looking to buy more as I too think the semi group will be the first to come back once demand picks up.

Charter Semi looks interesting and I am also eyeing AMAT but waiting for them to break their current annual lows (Chartered shares hit all- time low - Tuesday April 3, 11:33 pm Eastern Time biz.yahoo.com )

Chartered shares hit all-time low Tuesday. AMAT may be next. AMAT also has a large book value and plenty of cash.

EKS
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