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

To: E. Graphs who wrote (10226)	2/26/1998 11:28:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

E: Thanks I will. Built cash up a bit the last few days and getting ready to add some bargains - scavenging. Tend to stay away from the raz-ma-taz types though. And the semi-equips! (I know I've said this a billion times.) I would look to the semis first and then the semi-equips. Think I have diversified sufficiently elsewhere to absorb market shocks or at least some of the expected market shocks. Still don't trust the semi-equips (esp. front end). The market is absurdly too blase about them. (They have yet to beat my 20% bogey but are getting close.)

To: E. Graphs who wrote (10226)	2/27/1998 4:29:00 AM
From: shane forbes	Respond to of 25814

Not that this is any surprise but LSI ranked 45th from the bottom of a list of 1,000 stocks for total 1997 returns. Poor. And in their peer group LSI ranked 13th out of 16th in a listing of semiconductor stocks ranked by total 5 year return (I think that was the basis.). The only others below LSI were NSM and AMD and Microchip. In the 5 year ranking LSI produced a 5 year average of 29%, NSM 20%, AMD -0.4% and Microchip NA. The peer average was 37%. Altera was first at 55%. Observations: (a) This is one kick-butt industry for long term investing. When the peer group is at 37%, one dollar becomes 5 after 5 years. (b) In the time honored tradition of reversion to the mean LSI will outperform significantly over the next 5 years. Yes Virginia we can therefore expect returns of 50% a year over the next 5 years from LSI. Every 1 dollar you have invested in LSI today will become 7 dollars after 5 years. With less taxation. (c) (b) is true.