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

To: sea_biscuit who wrote (25160)	8/17/2002 2:50:34 PM
From: Andy M.	Respond to of 25814

Dipy, History says that with a cyclical stock like LSI overhead resistance just makes those necessary bullmarket speed bumps on the way up (don't forget you yourself implied resistance was necessary). Those resistance points are not irrelevant, but if perceptions/fundamentals turns sufficiently, as they did from the fall of 1998 to spring of 2000 there's no reason the stock can't break those resistances (just as "support" levels inevitably snap on the way down). In the fall of '98, the stock had been falling for three years. Plenty of disappointed investors with 30-65% losses. People could have bailed at their breakeven point on the way up and I'm sure many did (I myself sold a portion just past breakeven), but that didn't keep the stock from appreciating over 1000% from its lows in less than a year and a half. Anybody looking at LSI's chart knows that if the cycle has really turned, they could be in for a nice ride, and so a lot of folks might hold past their entry points (as I did last time with the bulk of my investment). You don't have to be perfectly right with semis, just generally right. And that's why people are getting in despite iffy news--the downside is fairly limited. I still say five at the worst, and the upside, even in a muted cycle, could be 100-200%. Andy

To: sea_biscuit who wrote (25160)	8/18/2002 1:37:54 PM
From: uu	Read Replies (1) \| Respond to of 25814

Anatomy of a crash... an interesting read... gold-eagle.com