Duane,
He sounds a little goofy, but what the heck another analyst recommending LSI.
<< 11/22/97 - Stock picks for investors
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[LSI] Logic is a superb company with a bright future. Do you ever sit in front of your computer, as you wait patiently for the machine to complete a task? Ever wonder why it takes so long? One answer is that the machine must constantly go back and forth from its memory to its brain. When there are hundreds of small tasks to be performed in a specific sequence, this can take a very long time. The answer would be to put the memory and the processor on the same chip. This is [LSI]"s core business.
[LSI] is among the top 50 American firms in spending on research (14.9 percent of its revenues). For example, [LSI] recently announced a new chip, selling for only $35, with a million transistors and a dozen subsystems that perform all the brain work for a digital camera. The chip produces images that are five times denser, yet 40 times faster, than the competition. Overall, [LSI] is a high-quality investment in a very exciting business. The third quarter is the first year-over-year up quarter in the last couple of years. The quarter was up 70 percent over 1996"s third quarter. But, despite the good news, the stock fell sharply after the announcement. Our strategy with any great company is to buy when Wall Street is down on the group. We"re not buying this stock for a quick trade, or for the next quarter"s earnings. But within five years, we feel [LSI] could be a major winner.
_John Dessauer"s Investor"s World, Potomac, Md. >> |
