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Technology Stocks : LSI Corporation

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To: uu who wrote (14063)8/5/1998 2:19:00 PM
From: Hightechhooper  Read Replies (1) of 25814
 
Addi,

Don't get upset, but LSI has no credibility at this stage of the game. Almost none of what they have predicted has come true over the past 3 years. They continue to allow analyst estimates to be way too high for Q4 and 1999. In order for them to get any mileage whatsoever out of forward looking statements they will have to deliver on some with consistency. I myself have fallen for their hype on too many occasions and every time it has ended badly. Outside of a very oversold condidtion that will lead to a temporary dead cat bounce I will not buy this stock again until they have results in hand. There are way too many risks in the shortrun and management has shown they consistently error on the optimistic side in their business planning. This is not a good combination because one hick-up could lead to disaster. From a longrun perspective the stock is way undervalued, but from a shortrun perspective LSI has to prove some things before it can move sustainably higher IMO.

Good luck
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