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Technology Stocks : LSI Corporation

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To: uu who wrote (11452)4/4/1998 7:23:00 PM
From: Jock Hutchinson  Read Replies (1) of 25814
 
Prior to the earnings announcement, the primary factor that will dictate LSI's price will be the forward looking announcements of other semi companies. If the market feels that semis are at the bottom of their "anticipatory trough", than LSI will move higher. I the market feels that there are deeper troubles on the horizon, then LSI will move lower. I believe that LSI will come in at three cents above the street with very positive forward looking statements. Moreover, the new plant in Gresham is taking twenty five cents off of the bottom line this year. Thus adding this twenty five cents in with accelerated earnings of the next twelve months would result in forward looking "real" earnings of $1.59 for the next twelve months. This equates to a price of about forty dollars a share, and I expect this to be reached in July.
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