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

To: uu who wrote (21928)	4/17/2000 2:46:00 PM
From: sea_biscuit	Respond to of 25814

That is why I am confused when you show your doubts about Companies such as LSI and other high techs whose products and services make it possible for Companies such as WMT to be more successful than any other Company making an attempt to take advantage of the Internet revolution! Addi, I have never doubted the abilities of such companies to innovate and make revolutionary products. What I am talking about is the issue of valuations. Valuations tend to go berserk when there are too many people out there that think these companies will be taking them to the moon. I never advocated selling LSI when it was in the lows. And even when I got some of my LSI out at 40 (pre-split), it was because I wanted to reduce my risk. However, now I do think much of the huge appreciation is behind us. Another thing is I don't like to stay invested in companies that don't increase their earnings through all kinds of markets. And not just that, I would also want them to increase their dividends year after year after year. To me, the second criterion is so important that I am willing to overlook even if there are occasional slip-ups in earnings. Of course, if they keep on slipping-up in earnings, sooner or later they have to cut their dividend anyway... But what about (a) stock repurchases and (b) retaining and re-investing the earnings for future growth? Well, I want them to do both (a) and (b), AND increase their dividends year after year! Naturally, that will reduce my universe to maybe 50 or so stocks. But I'm not bothered in the least. That is what good stock screens are supposed to do -- filter out most stocks and leave only the best of the best standing.