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Tom: I will be the first one to admit that the chart today looked terrible. It appeared as if there was a lot of stealth distribution, and it has appeared that way for the past two weeks. I will acknowledge that a lot of potential investors in LSI have serious short-term concerns that include the Symbios purchase, the Asian problems (both direct and indirect), the potential lack of business at Gresham (although current capacity is over 90%), the current slump in the semiconductor market, and the relative lack of visibility. Moreover, it appears that the overall market is going to show negative growth for the next year. In other words, it appears like the classic end of a major bull market. And what leads the next leg up? Semiconductors. Where might the strongest segment in the market be? The mid size caps, which historically have outperformed the large caps, nothwithstanding the past three years. I specifically invested in LSI as a moderate two year investment in February and later in May. Am I happy with its performance? No. But I don't see any fundamental reason to change my thinking about its long term prospects. Prior to this year, I traded for about five years. As a consequence, I developed a feel for the short term moves in a stock. But ultimately, it is fundamentals that drive a stock, and I see nothing that persuades me to divest of LSI. |
