Jock, your long post, 13914, makes a whole lot of sense (I'm talking about the LSI fundamentals part, not taking any sides in the one on one, you know what I mean). So why does LSI continue to get no respect? As you point out, they have continued to make decent profits, without revenues caving, spend on R&D a percentage of revenues that's way high, got new products out thanks to the R&D, and yet we languish. Intel has not done any better than LSI, fundamentally, and yet, today it's stock broke through a major resistance level ($85) and is at 85% of its all time high. Thank lucky stars for owning INTC.
Maybe LSI's problem is that they are a small-mid cap stock, which group has gotten at various (most) times in this bull market, not much respect at all. Today is a perfect microcosm example (of many, many there have been like it): DOW up 1.0%. S&P 100 up 1.0%, but S&P 500 up 0.6%, Russell 1000 up 0.4%, Russell 2000 DOWN 1.2%, Russell 3000 up 0.3%. Small to mid caps, as a group, just haven't kept up with the big guys. Another example...one day about two weeks ago, I think it was something like 70% of the Nasdaq rise for the day was due to four stocks: MSFT, DELL, CSCO and another I forget.
Unless this paradigm busts, I think we're all better off in the big stocks. Apologize for the very minimal research in getting to this conclusion here, but I have noticed this for quite a while, and have also heard analysts I respect (there are some good ones) say just this about the low-mid caps vs. the big caps. Looks to be true in this market. LSI and its stockholders could be beating their heads against something that just isn't going away.
Tony |
