To: FastC6 who wrote (22407 ) 7/25/2000 11:38:10 PM From: uu Read Replies (2) | Respond to A good friend sent me the following that just went out by Smith&Barney so called genius semi conductor analysts downgrading LSi to neutral (which is basically SELL especially with their new revised target price being at $40/shr!) from their previously rating of STRONG BUY, and it kind of took me back to the summer of 1998 and B.T Alex Brown's so called genius analysts who downgraded LSI to HOLD/SELL when it had already gone down to about $11/shr (pre-split). Anyway just thought to post the following for laugh and/or for those who do think of analysts as anything but self-serving con artists who do anything to screw the little retail investor on the stree (Wall Street that is)!we believe the semiconductor cycle is peaking, and along with it the P/E multiple for the cyclical stocks such as LSI Logic.We would normally prefer to remain constructive after a problem quarter like this, but the company's substandard execution in peak cyclical times makes it particularly uninteresting as the cycle begins to roll. Our new target price of $40 is based on 25x our 2001 EPS estimate. We believe there is downside risk into the $30 neighborhood should further estimate cuts be necessary.Strong Buy at $70/shr+, and becomes a SELL at $40/shr!! Furthermore, and unless the world is coming to an end in a year I for the life of me can not possibly understand and figure out how they come up with the notion of the semi cycle reaching its peak, when practically every semi Company is reporting the cycle is at least 24-36 months away to even reach its so called peak cycle! And especially with Communication sand wireless market growing so exponentially and LSI being a lead in that sector what on earth these so called analysts are talking about?! Like I said B.T Alex Brown of summer of 1998 all over again!!
