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

To: Haim R. Branisteanu who wrote (7715)	11/8/1997 4:47:00 PM
From: Mang Cheng	Respond to of 25814

Here is the Barron's article : ***************************************************************** "SIZING UP SMALL CAPS" By Rhonda Brammer (97/11/10) Except by the most liberal of definitions (more liberal than ours), Milpitas, California-based with a stock-market value of about $3 billion -- is not a small-cap. But it's getting there. Not long ago, LSI's market value was nearly $9 billion. Shares have fallen from 62 1/2 to 22 and change. Third-quarter earnings were weak and last month LSI forecast a lousy fourthquarter. LSI is the global leader in application-specific integrated circuits (ASICs) that go into everything from Sun workstations to Sony's Playstations. "When the hockey player skates over the blue line on a Playstation," explains Black, "an LSI ASIC is in there." In fact, Sony contributes about 20% of LSI's sales, and there's always the worry, Black readily admits, that the popular Playstations go the way of Cabbage Patch Kids and Tickle Me Elmo dolls. LSI's current troubles, however, are broad-based. Orders are slowing and prices softening, even as the company bears the costs of a huge new fabrication plant to come on stream mid-1998. For all of '97, LSI will report about $1.10 a share, Black figures, roughly flat with last year's $1.12 but sharply down from the $1.86 it earned in '95. He's looking for $1.35-$1.40 in '98. But why he's buying LSI shares and believes the stock could be a "home run" are prospects for '99: The new facility could boost sales to $3 billion from about $1.2 billion currently, and LSI could earn $2.10 a share. "And that's conservative," he insists, noting his model assumes operating margins of 22%, far below the 26.5% at the last peak. "Once you start filling the fab, it's like an airline -- you fill those incremental seats and it all goes to the bottom line." But what if LSI doesn't fill the plant? If you had a worldwide slump -- "if the stock tanked" -- it'd sell around 14-15, Black reckons. Book is $11 and LSI has more cash than debt. On the upside, if in 12 to 18 months Wall Street sees earnings of $2-plus for '99, LSI could, Black feels, double from here. ******************************************************************* Mang

To: Haim R. Branisteanu who wrote (7715)	11/9/1997 12:43:00 AM
From: Duane L. Olson	Respond to of 25814

Hello Haim! Thanks for the hedging tip.. There should also be some good trading opportunities for the next couple of months, with all the turmoil in the market.. I'm still targeting a "load up the options in December" strategy, so whatever trading I do, I'll into cash in time to buy the rest of my option position in December. Despite all the good news, and the solid stories, I am not expecting much out of LSI for the time being. E! ID'ed resistance at about 25, and LSI fell back after getting to 24 and change. Just about right on target. For the market as a whole, I'm looking at any current strength as a chance to lighten up or establish S/T bear positions. Thanks again for the tip! dlo

To: Haim R. Branisteanu who wrote (7715)	11/9/1997 11:05:00 PM
From: Serge Collins	Read Replies (1) \| Respond to of 25814

Barron's: November 10, 1997 In this week's issue of Barron's, the same issue that carries the glowing remarks about LSI from a fund manager, there is another article that is just as interesting. I'm sure you saw it, the one that indicates that LSI is one of the 25 leading companies in America with exposure to Asia. Morgan Stanley analysts have determined that LSI derives 25% of its operating profit from Asia. They conclude that investors should be wary of these companies. If the stock pops tomorrow, might be a good time to sell?