Addi, No I don't think we will see LSI down to 17 by Christmas. As you have seen, there is no significant increase in the price of LSI from the recent bottom, and nothing in the chart has said "Buy". (Will update chart view tonite).. It is interesting that the very severe decline in tech stocks has not affected LSI very much... if the stock is "washed out" there is a better chance that the next move is up.
The announcement that the CBOE will issue "LEAPS" options on LSI beginning Dec 22 might be slightly helpful to LSI... because some investors will purchase the stock and sell covered LEAPS against the stock. See: biz.yahoo.com
I spent the day buying AMAT, TER, LOR, VECO, VTSS, QWST, CTEC, AFFX, PKD, and a few others... I did not buy LSI. There is SOME chance that LSI could go significantly lower..but there doesn't appear to be that kind of selling pressure, IMHO.. I expect that I will buy some of the LEAPs on Dec 22 or thereafter.. Meanwhile, I feel that my capital is better used in other prospects than LSI right at the moment....Any modest rise in LSI is easily matched in other investments, I think.
If you decide to buy some LSI here, it would appear to be a reasonable "value" play on a company that should have excellent long-term prospects.. I expect to buy more myself, probably next spring.. But not right now... Good luck on your investment decisions, Addi! TSO |
