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Technology Stocks : Actel [ACTL] -- Ignore unavailable to you. Want to Upgrade?

To: CJ who wrote (478)	1/26/1998 7:22:00 PM
From: Larry J.	Read Replies (1) \| Respond to of 674

Hi CJ, *Mostly OFF TOPIC* I like LSI for a couple of reasons. Much like ACTL once an ASIC is designed in you've essentially got the revenue stream for the life of the product. (actually even better than ACTL because FPGA's are converted to ASIC's) No second source, price degradation, etc. Secondly, I believe that LSI is the clear technical leader in ASIC's and while I wouldn't attempt to argue LSI's leadership position on a technical basis, they are pumping a huge amt. of $$ on a percentage basis (don't have the figure off-hand) into R & D and so I would expect product advancements to remain on the cutting edge. That being said, I am reluctant to initiate any new positions in semi's until the SE Asia picture becomes clearer. If the group regains favor, then LSI would definitely be a top pick (or below $20). Re: DIGI, I was in it a few years ago but have not followed it lately. I see it got whacked real good today. Thanks, I'll have to do a little research. I did buy some CS today @ 13 7/16. I like their purchase of Yago (gigabit ethernet) and DEC's networking business which gives them in-roads in Europe. The CEO has structured as part of the Yago deal kicking in additional shares if $35 is not achieved in something like 18 mo. Employee options were repriced, but not the CEO's. While Cabletron's product portfolio has been criticized for not keeping up w the Jones (er CSCO) they have taken steps to fix this. CS's PE is by far the lowest of the networkers and the stock is simply too cheap at these levels. If it gets down to $12 I will "back up the truck". Oh Yeah, ACTL...........I'm waiting for earnings, then re-evaluating whether I hold or move on. Regards, Larry