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

To: Jules V who wrote (21960)	4/20/2000 4:33:00 PM
From: Andy M.	Read Replies (2) \| Respond to of 25814

Hey everybody, Couldn't you just feel "earnings fever" taking hold there in the last hour or so! Don't forget that Sun represents over 10% of LSI's business and they had pretty much the best quarter in their history this quarter. While Jules and Dipy have an intelligent conversation, I say bring on the mo-mo! Andy

To: Jules V who wrote (21960)	4/20/2000 4:49:00 PM
From: sea_biscuit	Respond to of 25814

**OT OT OT** It seems to me that Jeremy Segal (of Wharton I believe) said in the book "Stocks for the Long Run" that most of the Nifty Fifty did turn out to be worth it in the long run. But you had to be in the right stock. Well, Siegel says that if you had invested in ALL the 50 stocks, then you would have beaten the market after 25 years. However, he also adds that there is a value tilt even in the Nifty Fifty. It is the stocks that had P/Es mostly in the 20s and 30s that did well enough to justify their valuations. The others did not. In other words, had you divided the 50 stocks into two groups of 25 on the basis of their P/Es, the 25 stocks with lower P/Es outperformed the market while the other 25 failed, and failed miserably. He concludes that there IS such a thing as paying too much for a stock. And once you pay too much, you are almost guaranteed to underperform the index going forward.