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

To: Andy M. who wrote (25156)	8/16/2002 6:51:23 PM
From: E_K_S	Read Replies (1) \| Respond to of 25814

Hi Andy - LSI had a good run the last few days. Maybe we have seen the bottom when it traded in the low 6's. I recently upgraded my PC with a 80 Gig hard drive ($99.00 from WDC) and needed to purchase a PCI EIDE RAID card that included a Bios chip that allows my computer to recognize hard drives greater than 32 Gig. Since most of the new hard drives are now greater than 32 Gigs any PC's built prior to 1999 require this PCI EIDE RAID card. The card is not that expensive at $39.00. With LSI's recent purchase of the Mylex assets, I can see great short term PC "upgrade" sales of their RAID cards for users such as myself. It's just another observation I have noticed in the PC market where as technology price points change (80 Gig hard drives now under $100), opportunities exist for companies to sell component products (like LSI's RAID chips) in quantity. This window of opportunity for this upgrade cycle is good for perhaps only eight months but again LSI is in the sweet spot to service these customers. It appears to me that LSI is positioned quite well with their product portfolio to take advantage of any upturn in the chip market. The stock IMO continues to be of good value when you compare it to other companies in their industry. At least LSI does have quite a bit of cash on hand, solid core assets including a very modern manufacturing facility (in Oregon), competitive long term out source partnership agreements (located in Asia ie. UMI) and a diversified upgraded product line (new technology gleaned from all the companies they bought in 1999, 2000 and 2001). I also think LSI's management can be trusted as our CEO has experienced a few of these boom-bust cycles and knows quite well what is required to leverage the company for the next up cycle. Have a good weekend. EKS

To: Andy M. who wrote (25156)	8/16/2002 8:50:51 PM
From: sea_biscuit	Respond to of 25814

And now you're troubled by the apparent lack of overhead resistance! Andy, this move is large in percent terms, but it doesn't take anything away from the overhead resistance theory. Just consider the fact that those who bought it just 6 months ago, paid 18 bucks for this. They will know what overhead resistance means, if they stick around with the hopes of breaking even!

To: Andy M. who wrote (25156)	8/16/2002 9:00:46 PM
From: sea_biscuit	Read Replies (3) \| Respond to of 25814

Andy: Another way to look at it is : does a stock like JDSU have overhead resistance? You bet! It has T-R-E-M-E-N-D-O-U-S overhead resistance. Still, does the resistance prevent it from moving from say, 2 bucks to 2.40? Absolutely not. While LSI's situation is not identical, it is quite similar. Another, even more extreme, example is WorldCom. Overhead resistance couldn't prevent the stock from rising 300%, from 0.06 to 0.24 within a few days...