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

To: shane forbes who wrote (8080)	12/2/1997 1:56:00 PM
From: Robert T. Harvey Jr.	Read Replies (1) \| Respond to of 25814

CNBC just reported hugh increase in sales of PlayStation over last year. They say manufacturers are going to have to scramble to meet demand. Is this good for LSI?

To: shane forbes who wrote (8080)	12/2/1997 2:42:00 PM
From: shane forbes	Read Replies (2) \| Respond to of 25814

Briefing comments on Kurlak's downgrades: CHIP STOCKS: We're going to give Thomas Kurlak a break today. Although we rode him pretty hard earlier in the year for dogmatically pumping names such as Micron (MU), despite a breakdown in its fundamentals, and then flip-flopping on his previously vehemently bullish Intel call, we are now going to give Mr. Kurlak some credit. No matter what you think of his methods, the guy is a money maker. Through his incessant recommendations of Intel and Micron, Mr. Kurlak helped those who followed his advice make a fortune. And, if you acted on the 180 degree turn on the chip group the Merrill Lynch analyst made in late summer, you would be sitting pretty at this point via gains on short sells. Today, Mr. Kurlak is squeezing even more blood out of the sector that until recently he was the preeminent bull. According to Kurlak, over-investment in new capacity between 1994 and 1997 has resulted in an oversupply situation in the chip industry. And, because the PC industry is not consuming new chips as quickly as it has in the recent past, Kurlak believes a chronic weak pricing environment has developed -- a problem that he expects to put the squeeze on revenue growth at the chip makers. For the industry as a whole, he expects only modest revenue growth over the next 1-2 years. Based on these assumptions, the analyst is lowering his earnings forecasts on several leading chip makers. On Altera Corp. (ALTR 40 -11 11/16) he reduces 1997 to $1.51 from $1.57 a share and 1998 to $1.60-$1.75 from $2.00 a share; Texas Instruments' (TXN 48 3/16 -3 5/8) 1998 EPS is cut to $2.00-$2.50 from $3.00 a share; LSI Logic's (LSI 23 5/16 -1 13/16) 1998 estimate is lowered to $1.10-$1.20 from $1.20-$1.30 a share, and VLSI Technology's (VLSI 20 7/16 -2 1/2) 1998 number is reduced to $1.40-$1.50 from $1.55-$1.70 a share. --- FWIW going back to 1994 is silly... that equipment is dust today... DRAM overcapacity is real... other note about lowered revenue growth 1-2 years out is only an issue for certain companies not all... want to see why MU not included here... PC industry is still doing well - look at MPU lead times... other industries are using oodles of chips - consumer electronics and communications for 2 big ones... foundries still doing very well so don't quite get it... of course if his revenue predictions are correct then there goes the semi-equips for next year... once again LSI has proven to be a leading indicator [ coincidence or destiny :-) ] --- OSO another point about SDRAM - this might be INTC Pentiums and other high clock speed chips only. In honesty don't know. The big sub 1,000 market that uses Cyrix chips and other slower chips may not need the SDRAM (speculation).. Of course these other chips may become so cheap (per Kurlak) that high clock speeds will be common-place which would imply SDRAMs .... :-) Mine's a P-166 with 64 MB EDO DRAM and it does not just bake, broil or glaze it sets the table and cleans the dishes as well! SDRAM this... :-)