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Technology Stocks : LSI Corporation

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To: E. Graphs who wrote (14305)8/18/1998 11:11:00 PM
From: jelrod3  Read Replies (1) of 25814
 
LSI hit a new 52 week low when it closed at 18 1/4 today, August 18. It is selling at roughly 14.5x fy99 earnings estimates, which happens to be about its average 5 year low PE. On a P/S ratio basis, it is hovering at about 1.9, also a low point for the year. If revenues remain flat to down, this stock could see $13 7/8 on the low side. If revenues pick up by 10% (to about $10.25 per share, which is anyone's guess) the stock could trade up to $30 per share.

The problem with LSI is that there are good companies, and there are good stocks. It doesn't fall into the latter category by a long shot, and most investors find themselves constantly trying to catch a falling knife...and wishing they had simply bought INTC.
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