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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: country boy who wrote (20120)	10/10/1999 9:49:00 PM
From: J_W	Read Replies (1) \| Respond to of 25814

cb, This weekend an article in IBD tried to sum-up the reaction, mainly explaining that supplies of chips will be tighter because of the quake, component prices will rise, and the stock prices of the chip companies will fall---huh? I'm still having trouble trying to see it. They talk about PC prices going up as a result, and consumer demand thus slacking. But we all know about LSI's multi-year shift away from PC exposure, and few semi's have been untouched. On the surface it appears to be quite a contradiction. The only thing I could find was that the sell-off was due to the perception that manufacturers have been building inventory due to Y2K concerns. If product sales do not remain strong this quarter, they (the manufacturers) would be canceling some orders from their semi suppliers this quarter. But should LSI be affected due with their low exposure to PC and other commodity products? I don't think so, but obviously someone else thought otherwise last week. The news on HIFN where two of their customers, LU and Quantum, said that they would be reducing orders from HIFN this quarter triggered the huge decline in HIFN. But HIFN makes 80% of their sales to these 2 customers. LSI has no one customer representing more than 10% of its sales. siliconinvestor.com I did a search for any negative news on LSI and found nothing. As far as I know LU is not a customer of LSI but a competitor. As for Quantum, LSI is suppling a single-chip design for Quantum's disk controller to be utilized in Quantum's next-generation 200 Mbyte/second Fibre Channel hard disk drive. I doubt this would be affected by the news affecting HIFN. Message 10201482 Just last Wed LSI traded as high as 59 5/8 closing at 58 5/8 that day. Three weeks ago on 9/14 LSI hit a 52 week high of 62 1/2 closing at 61 7/16. The intraday low on Friday was 49 1/2 so we have had an intraday decline of 13 pts or 20.8% That's quite a drop for a stock that is expected to report improving earnings of .30 on Oct 21st. Currently LSI is at the same level it was last July when earning were reported. But this latest sell-off sure didn't help with the chart. It appeared that LSI had made a ST double bottom the previous week, now this. Triple bottoms are not good. (What do you think E.?) If was a problem, LSI should have warned by now. But I remember all too well the events of last year and '97 when LSI sold-off. A year ago LSI was in the 11-12 range at this time of year. We've come a long ways. The only other theories I can think of is that some hedge fund(s) caught on the wrong side of gold short squeeze are selling LSI to raise cash, or that the quick decline last week triggered a lot of stops on the way down, BWDIK. Short term LSI is grossly oversold so I think we should see a nice bounce this week with a run-up into earnings. If you have been nimble the last few weeks you should have been making a good return trading LSI. I have been trying with some success. Regards, Jim