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

To: shane forbes who wrote (12799)	6/3/1998 8:32:00 PM
From: Hightechhooper	Read Replies (1) \| Respond to of 25814

Shane, It is no longer "K The Investor", it is "K The Trader"; at least in this sector. With that in mind, my approach is to look for periods of high volatility and go long good companies on weakness and short bad companies on strength. It looks like LSI's business has finally stabilized after 8-10 months of uncertainty so now LSI is a one of the few buy on weakness candidates in the sector right now, but the question is when will sentiment turn. That is why I am here bothering you, I am trying to get a feel for where the bottom is. We are close in this range, but a brief trip into the teens is still possible. LSI's biggest risk right now is bringing up that new fab during a period of slow industry growth...that is the only fundamental to watch at this time for me. Forget their product portfolio, new product opportunities, IP etc., etc. That is just background noise. Supply and demand for a stock and market sentiment seem to be the only two factors that matter in this segment because earnings can change so quickly. I have learned from my past mistakes in this sector, an investors mentallity does not pay off over any time horizon relative to an "in and out" strategy. Just look at what is happening now, the whole sector is tanking due to weakness in all PC segments plus a major inventory correction in wireless, yet every companies chart looks just like the sox. There is absolutely no differentiation. LSI's business is stronger than it has been in over 2 years but its price is near a four year low. Yes, this is a market ineffciency but rather than fight it and say "this shouldn't happen" I am now accepting it and trying to benefit from it. Mark the Trader is now my idiol (again for this segment) and I am trying to model myself after him. In order to be like him I have to see the good and the bad in every company and LSI certainly isn't all good...... Sorry if my negativism upsets you, but that is my way of charting market sentiment. When it shifts you'll see the tone of my posts shift as well. Until then, LSI is dog shit and I don't want to convince myself otherwise until EVERYONE thinks its dog shit...that will be the time to buy IMO. good luck, K