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<<7) Insider sales Look at your favorite tech and show me a lack of insider sales and I'll show you matching snow flakes (esp. the big techs). Besides Moshe Garielov left the company. Even better count the big semis with recent insider purchases ... >>
Shane,
I'm an IDTI investor and seriously considering investment in LSI.
The insider activity at LSI is interesting. Except for option related sales before 6/97 and Gavrielov's registration to clear out his holding, there hasn't been a sale on my record which goes back to early 1996. That is remarkable for a technology company. On the other hand Corrigan's recent purchase really isn't very impressive considering it represents only about 1% of his total holdings -- which are substantial. And I don't see where other directors, officers, or VP's have a whole lot at stake in LSI -- approx 1% total. This makes me pause. [The insider activity at IDTI has been very bullish, purchasing $9MM worth of stock at $10 added to already large holdings (currently trading at $7, approx. 1xbook : bargain?).] I would like to see a large group of LSI VPs and officers load up, and am surprised they aren't, considering future revenue growth rates that are being projected and the decent number of recent upgrades. [These upgrades also make me pause because I know how that game works: the houses trade in, upgrade, and trade out.]
On the business side, R&D isn't paying off lately. Immediate execution and tremendous volume sales are key. What kind of volume sales does LSI have? And what margins on those sales? [IDTI stock is in the doldrums because of failure to ramp quickly and make the volume.]
On the technical side, it seems that investors are about as pessimistic as can be. LSI is attractive on this point, especially since it hasn't taken out the low set in Jan, or early June.
Just inquiring,
Jackson |
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