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

To: anthony karpati who wrote (10935)	3/16/1998 11:07:00 PM
From: shane forbes	Read Replies (2) \| Respond to of 25814

Anthony: RE: How long can semi makers sell chips at or near cost? I think these are just the DRAM guys who do that. ALTR has gross margins of 60%, LSI's is 45%, ADI's is 50%, many of the linear companies' gross margins are 60+% etc. The reason the DRAM guys are dying is a whole combination of things - but I suspect the won devaluation is the big culprit near term. (There also is lots of capacity, some new construction and I guess the guys in SEA just have to keep pumping out the chips to generate cash.) ---- The one catch with the move to 0.25u is that all of a sudden the semis could make a whole lot more chips from a single wafer. My first inclination a few months ago was that there would be no way to sell all those chips. Then it looked like they definitely did sell all those chips. Now thanks to the PC makers' problems I merely hope that they are selling all those chips. If not we are dead. ---- RE: tracking of LSI and MU's prices. One would hope this is more so because they are fairly large companies in the same sector and not some weird connection of DRAM to LSI's business though lordy we know that the street does sometimes mistake LSI for a commodity type company and occassionally a DRAM type company! Why they continue to do that I don't know. ---- RE: MU price action tomorrow. I did not read the MU earnings release before I posted here earlier this evening. At that time my feeling was O well no big deal no surprises here - in fact prety decent - just a 6c shortfall in a very weak pricing environment. Then I read the release and now I have some issues! See my previous post to Thomas - it looks like the MU loss is a LOT worse than just 6c under estimates - more like 24c under estimates. This would be a problem for MU - call it bleeding money syndrome leading to the stock may get pounded tomorrow reaction. There's a HUGE shortfall in semiconductor sales that needs some real explaining as well. Any way tomorrow we will find out. ---- Shane.