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: shane forbes who wrote (9130)	1/24/1998 10:01:00 AM
From: shane forbes	Read Replies (1) \| Respond to of 25814

Briefing.com's positive take on LSI's move: Chip stocks were among the tech sector's best performers on Friday due to continued (select) bargain hunting... LSI Logic posted a modest gain (+13/16)(sic) despite news that Gruntal cut its FY98 estimate to $1.40 from $1.60... Record quarterly revenues, solid earnings and positive forward looking comments underpinned the stock... (I'd question the "solid earnings" part! But "positive forward looking comments" I agree with absolutely.)

To: shane forbes who wrote (9130)	1/24/1998 10:41:00 AM
From: shane forbes	Read Replies (1) \| Respond to of 25814

From Barron's Scott Black's take on techs: 1. Semi-equip spending lucky if flat this year 2. Likes COHU (yes!) Less than 3% of business from Japan/Korea. Had a record Q3, will have a record Q4 (Dec 97) and Q1 for 1998 also up. Perhaps a rose amongst thorns? 3. About the semiconductor industry: "secular growth rate of 15%.." "There just isn't another group of its kind." 4. "In technology you should buy a leader and make sure they have cash to fight another day." 5. He likes NUHC (I've looked at this one closely). I believe Heartland Funds' guys also have this one. Cheap. Risky perhaps. 6. And finally about LSI: "In pure ASIC there is really no competition for LSI." PlayStation: "Sony hasn't gone on record" but "LSI really has the best solution." About Gresham: "The new fab will take them out four or five years and will sustain 3 billion in corporate-wide revenues." About 1998: "This won't be a terrific year." Estimated about 1.10-1.20 EPS for 1998 with revenue growth about 10%. About 1999: "The big push comes in 1999." 1.85-2.00 EPS About line-widths: IBM only competitor (internally). ---- No mention from Delphi of the 3 billion / year expected revenue for 1999! Perhaps he was not quoted correctly earlier. May have meant the Gresham fab could support 3 bil/year! Remember Gresham is a modular design. But besides that I like the way this guy Delphi picks stocks. 4 of the picks he likes l/t are included in my (very select list of) 10 best bets for the long term! --- Back to LSI: I agree wholeheartedly with his take. LSI's problem and I'm more convinced of this than ever is that they are so far leading edge the markets need to accelerate to use their capacity! Once this happens, LSI's design-ins will translate into major revenue growth that would likely catapult the stock into one of the darlings of the industry. But will take time. Getting nearer however. This year would not have been a bust had DVD standards been set. Consumer products always take off once standards are set. Best recent example is 56k modems. --- And for "interest": The United States may launch a ''foolish military action'' against Iraq as a way to divert attention from President Clinton's sex scandal, an Iraqi newspaper said today. If the market tanks because of Clinton what will history say: An untoward pen_s sank the greatest bull market of history. The irony of the whole thing amazes me. Not great economic competition but little organic things. Life is funny. --- E! Barron's likes OATS!!!