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

To: Tony Viola who wrote (22986)	10/24/2000 4:29:04 PM
From: All Mtn Ski	Respond to of 25814

I agree Tony, this report looks very solid. They had a rev issue last Qtr, but this Qtr they beat the rev estimate. PS2 delayed launch did not effect Qtr at all. LSI should move higher, the key being the positive guidance going forward. Go LSI! TT

To: Tony Viola who wrote (22986)	10/24/2000 4:34:10 PM
From: Jock Hutchinson	Read Replies (2) \| Respond to of 25814

Let me think now. You have a company that is on track to earn $1.80 a share in 2001. It has an anticipated revenue growth of 30 to 40 percent going forward. Its fastest growing business is growing at a rate of 65 percent year over year, and the stock is currently selling at 16 times next year's earnings. That is ludicrously cheap. I understand the risk here, and that of course is that it's getting late in the cycle, but given LSI's positioning with respect to communications, the most likely scenario for the next down year or years is that LSI will still be able to grow year over year revenues and profits. Thus, even if LSI earnings stagnated for a two year period, it would still be a very cheap stock at today's prices. And by the end of next year, they will have over $2 billion in the kitty, which is an incredible amount of money to have set aside for future fab expansion, and that will not happen 'til 2003 at the earliest. I just don't see a better high tech bargain out there at these prices.