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

To: Duane L. Olson who wrote (8228)	12/9/1997 5:26:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

OSO that Nov Hi Dec Lo scenario thesis is a good one. And you may be right. But I'm still in cautious mode. Instead of jumping in with both feet why not invest just a portion and hold the remaining in cash. I would like to see how January earnings turn out. And inventory as well. Got our first clue today - NSM - check out the action - down 12% for the day. Have not looked at details but something in there the market did not like - initial suspicion points to the fact that stock seems to be beating estimates by smaller and smaller margins. Though this may be just bad analysis by the experts post merger. Their core business (analog) looks very strong. UPticks in Nov. Perhaps CYRX was the problem - don't know. But I would dollar average cost back in if I were you. What's the bet that if LSI had reported today it would be under water by 10-15% at the close. That would be my sense. Can't see any faults in your less capital => higher gross margin for survivors argument. Though I would not take this too far. Those companies in the far east are not going away anytime soon. I would characterize this an extended blip. And s/t there may well be margin pressure if those companies dump (mostly talking about DRAM) Still I think the fact that the lows are here might suggest not letting the opportunity entirely slip away. Hence putting some cash back to work makes sense (MU reports soon - actually might surprise - though that would be a tough one to swallow! - supposedly they are the low cost producers now). Also can't argue with the healthy semi-profit scenario over 2-3 years. Should happen. But the next few weeks may present a better buying opportunity in individual companies. After this q earnings things may slow down for awhile.