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

To: uu who wrote (8836)	1/6/1998 7:58:00 PM
From: thomas hayden	Read Replies (1) \| Respond to of 25814

I think LSI will be next with their pre announcement. It's hard for me to believe First Boston uped the ante today. Are they crazy?

To: uu who wrote (8836)	1/6/1998 9:17:00 PM
From: sea_biscuit	Respond to of 25814

I think the story is going to repeat over and over again during Q1 98. And tech companies are particularly vulnerable, for they usually trade at P/E levels of 40 or higher. If earnings come down by 20%, the P/Es can easily go down to 20. That means, the "P" part of the P/E would decline by 60%! Well, if it is any comfort, it is that LSI has already come down by more than 50% from its summer highs! For those who have been spoiled rotten during this phenomenal bull-market, these things might come as a surprise. But this could also be a valuable lesson. It all depends on how one takes it... Dipy.