Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: uu who wrote (8373)	12/12/1997 2:45:00 AM
From: sea_biscuit	Respond to of 25814

Who are the people selling? Are they honest the god share holders fearing from losing their materialistic values/gains, or just people who are simply selling the shares they do not own! It hardly matters which. The only thing that matters is that they are selling! And who are the people buying? and why are they buying? The ones who missed out on the previous "dream run" are buying now. And the reason they are buying is that stocks which had once commanded high prices are now selling at discounts of 20%, 30% or even more. They think they are getting in at bargain basement prices. That's why they are buying. [The real bargain basement could be several floors below, but that's another matter...] How are valuations determined?! No they are not! Valuations are dead. They were thrown out of the window a few years ago! Dipy.

To: uu who wrote (8373)	12/12/1997 9:12:00 AM
From: Michael Grosz	Read Replies (1) \| Respond to of 25814

Addi, The problem that the techs have now is anti-intuitive. If one thinks that LSI will return 7% on investment over the next five years, that beats 6% return from a bond. Many people buy, and the price appreciates by 50%. However, when Asian flu is factored, analysts say LSI may only achieve 5% return. As a result, almost everyone wants to sell, and the price depreciates by 50%. The short version: a VERY small revision in numbers can lead to a hugely disproportionate fluctuation in stock price. Fortunately, we are long-term investors. When double-digit earnings growth returns, so will the disproportionately LARGE growth in stock price. PS. DLO... Trust me, you don't want me on your side, that would almost guarantee a meteoric rise to 27. Or, maybe you do...

To: uu who wrote (8373)	12/12/1997 10:07:00 AM
From: Duane L. Olson	Respond to of 25814

Addi, old friend, I think you put it well. BTW, E! had predicted a bounce in LSI today, so we will pay attention.. she is rarely wrong. But I must report that the chart still looks like it has more downside for LSI. Please understand that my minimal chart skills were purchased with a coupon from a cereal box, so you are taking your chances if you put too much value on them. However, I'm watching the Stochastics primarily, and it looks like it would take at least a couple more trading days to turn.. IMHO, something close to 17 is possible. TSo