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

To: jeff greene who wrote (22024)	4/26/2000 12:40:00 AM
From: patrick tang	Read Replies (2) \| Respond to of 25814

This is what I got out of the cc and also my thoughts: 1. Networking 20% sequential growth. They are taking market shares from LU and IBM, copper interconnect notwithstanding. Or perhaps because of copper? With people like SUNW going gang busters, networking is going to be fine for the rest of the year. LSI is supposed to have a pretty good 0.18um process and have lots of design wins at SUNW because of it. Guess this is all starting to show. 2. Broadband 20% sequential growth. Same as networking. Nortel is going gang busters and LSI chips are supposed to be in all their stuff this year. No let up for the rest of the year. 3. STB - they took designs away from STM because they are not capacity constrained. They should be #1 in STB by end of the year. With broadband coming on, PC/appliances/STB/TV/IP phones merging, this market will be a much contested one. But cost of entry is high, needs lots of IP to be able to integrate the functions onto one chip. LSI is well placed. And being #1, that should generate the cash flows needed for further investments into more complex chips. 4. CDMA - this is still wild cat. IMHO, if LSI beats other rivals to be formidable #2 to QCOM, sky's the limit for the stock. If not, unless we see bubble again, I do not see LSI higher than $70 to $80 with occasional spikes up from there. Good part is 'they have good relations with the handset guys in Europe, Japan and Korea', so they get to see the customers' requirements. But they will need to bring out more and newer chips and more advanced chips later this year. I personally don't suspect Intel can compete, they have never been really good competitors outside CPUs, and now they have a real fight on their hands with AMD. But I think we have to wait till at least this X'mas before we can get a better feel. 5. Consumers is now all SNE. DVD and DCAM are just footnotes. What can you say anymore about PSII that's not been said already. I'll go out and say one more. By '01, PSII will be so successful that it will run away from Sony's ability to supply chips - with net access and hard d, this is the sub $500PC and will sell tons! 6. Sequential growth of 8% to 10% for rest of the year is pretty secure unless we have an infrastructure buildup slowdown. As for that to happen, has anybody noticed how Yahoo is slower than a crawl during the day time? I think they need much better servers. And so does everybody else. 7. 20% margin by end of the year! That's great! Will bring acct receivables back down in Q2, so Q2 should throw off a little bit more cash than Q1. With $1B in the bank by end of Q2 and no long term debt, LSI should be able to afford some big acquisitions if they want to. I will not be surprised that they already have strategy in place for that. If market goes down even more, I expect them to make a move. Sure the market will not like that and will knock the price down, but assuming that they make the same austute choices on targets like before, the lower stock will make LSI a big buy. 8. Storage not only strong, but Metastor growing faster in sales and margins than OEM. Hopefully LSI can grow that big enough to spin off Storage into a separate co. 9. They are 'managing operating expenses'. As an operations kind of guy, I like that. 10. No mention for digital TV products. Perhaps this is too early.

To: jeff greene who wrote (22024)	4/26/2000 2:47:00 PM
From: shoe	Read Replies (1) \| Respond to of 25814

I saw Wilf Corrigan on CNBC today just by chance. He was subdued, perhaps his normal demeanor, which deflated what he was saying. Didn't mention any specific products. Just that LSI wouldn't be hurt like fabless companies by shortages because LSI had fabs in Oregon, Washington (?), and England. I think he said that the industry would be affected by shortages over the next 18 months. He did say that the April results were the best in the company's history and that he expected 35% growth going forward. No pitches for PSII, CDMA, etc. But he did say they were making telecom and intenet products. He sounded like he was just throwing out buzz words, though. Wish he had brought someone dynamic with him! pjm