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

To: getgo234 who wrote (9561)	2/7/1998 5:31:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

getgo: I was afraid that with the INTC talk someone would invariably think up this one! A year ago I would have said not likely. 6 months ago I would have said not likely. Now I would say perhaps. But LSI even though relatively "small" could play with the big guys if they do one thing - split the costs of the fabs they build i.e., partnerships. Then again so far Gresham looks like the future for several years and if you believe that comment from Scott Black in Barron's awhile back then LSI potentially will have capacity for 3 billion in revenues. If they reach 3 billion then we're fine. That makes them one of the "bigger" companies. I recall reading somewhere sometime ago about how difficult it is for semi companies to cross this 2 billion barrier and become one of the bigger guys. I also agree that mergers are a way out but LSI's business is quite unlike most companies - though heck with INTC's reorganization it may fit nicely into one of INTC's new "divisions". Having said that I really don't know whether this will happen in 1 year, 2 years or at all. It does make more sense now than it did even a few months ago.