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

To: Haim R. Branisteanu who wrote (7727)	11/9/1997 7:43:00 PM
From: shane forbes	Respond to of 25814

Hi Haim. What I was referring to is that famous quote from not Michael Murphy (my mistake) but the guy who writes the Forbes column, M. Giaa. . He wrote a book awhile back - How to buy Tech stocks. I just threw it out there to keep people aware. LSI should see tax selling - I don't see why not. Anyway I do not expect LSI to march permanently upwards anytime soon - not by a long shot! I was speculating earlier on this thread about how at the low 20's LSI had better be buying back their shares. Got a confirmation from the San Jose Mercury News: More recently, LSI Logic Corp., (NYSE, LSI) said in May it would buy up to 5 million of its own shares. To date, it's bought only 500,000 shares, a spokesman said, although its stock has been falling steadily since June and the company has a cash hoard of about $645 million. What's more, there's no time limit on LSI's repurchase program. I like doing detective work. Here goes: Assuming they bought sometime in October (the above article had an Oct. 29 date and from what I could tell there were no buybacks in Q3) the "best" price they would have paid is 18 5/8 and worst around 32 1/2. However I think we could fine tune this range. Assuming again that they purchased after the earnings fiasco (since they would have known that it would have been silly to buy around low 30's when the stock would tank on poor Q4 outlook and they never bought at low 30's any time sooner in Q3 - at least they did not mention any buybacks in their Q3 release) my best guess based on the following is that they paid around $22 on average per share. Not bad. 10/17/97 8,379,500 24 11/16 23 3/16 10/20/97 4,808,400 25 1/4 24 5/16 10/21/97 3,104,200 25 24 9/16 10/22/97 2,887,600 24 3/4 23 3/4 10/23/97 1,873,600 23 13/16 23 3/16 10/24/97 3,301,200 24 22 1/4 10/27/97 3,888,800 23 13/16 20 1/2 10/28/97 6,407,700 23 18 5/8 --- Now finally we have 1 clue about rational prices. (just kidding) And the US made it to the World Cup in France next year by beating Canada 3-0. FWIW LSI bought back around 2 million shares at 23 1/2. Not too bad though all things considering - the low was around 17 last year. They bought around a million at around 27-28 though and then the next million or so around 17-20 when the stock collapsed last July. (I hope your parents are doing fine.)