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

To: RFF who wrote (7748)	11/12/1997 12:03:00 AM
From: shane forbes	Respond to of 25814

Hi RFF: I "think" Compaq at one time was one of LSI's bigger customers - around the 10% revenue range. Not sure may be confusing LSI with someone else. Agree absolutely with your point about the networking and telecommunications areas. In fact the latter area is a gold mine in general for anyone who can produce cost effective low power chips, the former should be an area where LSI's high density rambo Ferrari type designs should shine. My concern is with the other two legs of the LSI stool - consumer electronics and computer-related. Of these two I think we are probably O.K. viz-a-viz consumer electronics for the long term but I get a sense that the computer-related area is not going to be fun for quite awhile. To be honest I do not all the details about what LSI does in this area. Yet it seems that high end computing is not the area to be in the next few months. Can't be certain. It might surprise and recover. LSI has the GSM chip coming up next year and the embedded DRAM thingk with MU as well. These ought to be revenue boosters. If the SONY deals comes through we should be O.K. And I get a sense that DVD may finally have arrived - but not in consumer electronics but on the PC. So there might be a nice confluence of happenings next year for LSI. Unfortunately I know Mr. LSI's past history. And these downturns do not all of a sudden reverse in the course of a few months. Likely LSI will take a couple of quarters to get back on track. That would "suggest" LSI will be under the gun at least until December and perhaps after a few s/t up-rallies will still be struggling in the first Q of 1998. IMHO. Having said that if you are a l/t investor and you stick to the NAIC guidelines of hoping for a double every 5 years LSI should more than satisfy those ambitions from these low prices.