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

To: RFF who wrote (10257)	2/27/1998 2:07:00 PM
From: shane forbes	Respond to of 25814

RFF: The only area that LSI might be hurting on is high-end computing (non-storage) - whatever they do there !!! (workstations related) Everything else is fine I think. Yes and LSI can ramp very quickly - they can do some of these in as little as 6 weeks. So considering it's been about 6 weeks from the earnings release we have an alignment of the stars in the universe right now. The other neat thing is that once they cross a threshold (fixed costs) most of the sales go straight through to the earnings line. My guess would be that anything above 80% sales would have at least half of it going to the bottom line. So that means if they are at 90% then we just added 5% of net sales to the bottom line. Amazing if it has happened. Because that would mean LSI's profits just went up 50%. See why I'm just a tad skeptical. But being now in LSI Bull camp, I like the suggestions, the implications and the conclusions!