Tom:
> Why would LSI be up so much in the face of all of the earnings
> cuts.
Because the guys who cut the earnings have started buying the stock!
Surely by now you should know (please read my post yesterday). LSI reported a penny better than expected and predicted a not so bad next 2-3 quarters (in fact they said ther growth most likely will be better than the rest of the industry). So the con-artists (i.e. analysts, you know, the samy guys who had LSI at a Strong Buy when it was in the $40's and then downgraded it to hold/underperfom when it came down to the $20's) are thinking its time again to make their big clients happy!
So they cut the estimates/downgrade the stock, etc., and then start slowly buying the shares. In about 30-60 days when the price comes up considerably (probably this time to the $30 range) they, out of no where, suddenly upgrade the stock for the final 10-20% push. And then they start selling to make huge profits for their big shot clients. Meanwhile, the little guy on the street will be buying the shares they are selling then just the same as the little guy is selling his shares to them right now (because of their so called downgrade)!
And let me go on record as saying that the same guys who downgraded the stock today 1/23/98 (e.g. Morgan Stanley, Josethahal Lyons, and Gruntal - and in case of Gruntal, despite the fact that I consider their chief market analysts as an honest man) will start upgrading LSI once the stock is reached the $29-$32 range.
Regards,
Addi Jamshidi |
