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To: Hightechhooper who wrote (13008)	6/12/1998 7:45:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

(np) A coin that's been in the pocket too long also has smudged sides. (1) We are not comparing apples and apples here. That 60% of 3.3 billion means 1.98 billion which is much (and I mean much) more than the sum of the ASIC and std. cell count that I'm comparing LSI with: pubs.cmpnet.com (add the IBM numbers and you get: 1050 + 315 = 1,365 for 1997 cp. to 800 + 350 or 1,150 for 1996. This sure as hell is no 70% increase.) (HA! and looking at the above IBM went up by 31% and not the 35% as I had been saying - LSI went up 42% in std. cells - this is the future and the numbers show LSI is not going backwards.) (2) STM also likewise has a broad definition for 'custom logic' chips. (3) We know IBM is good. I've said so here enough of times. (4) But it does not mean LSI is dead or doomed or decaying (for the nth billionth time) (5) Also some of IBMs counting may be for captive use and this part should be stripped out when comparing with LSI's revenues or revenue growth rates. (6) Anyway the article does mention LSI (as well they should since LSI is very good) and it does mention the shifting to a new chip maker problem (translated: LSI's fat pipeline will be plenty for awhile and in any case LSI has very good capabilities all over the place that IBM does not - networking as a big glaring example). (7) As I've said earlier, big picture, this is all about making solutions and there are plenty of products to address in the coming years for LSI to thrive with or without IBM's $100 million investment. The people who should be shivering are those who do not have the design experience and the commodity people - not LSI's problem. (8) O and BTW LSI will invest $240 million+ this year in R&D. Do we really know how much IBM puts forth into R&D. Do you really know how many years that 100 million is going to be spread out over? If it is over 3 years that's 33 million a year - peanuts, ok a lot of peanuts but nothing to get petrified about... Shane.

To: Hightechhooper who wrote (13008)	6/12/1998 8:02:00 PM
From: RFF	Read Replies (1) \| Respond to of 25814

The downside in this market is not over yet. The NAZ and tech stocks have had a good correction and there are some values now, but the DOW is still way over priced. The DOW is only off 4% from its all time high. These huge companies trading at 40-50 PEs is insane - even with these low interest rates. Most of these large companies will see big softness in their export markets - latin american currencies are starting to slip as well. With the dollar so strong foreign customer are going to slow buying - and what they do buy will convert back into fewer dollars. Plus all these nations will flood our market with cheap products - look for more compression of profit margins over the next few months. Depending on what is said over the weekend, we might see some follow through to the rally from Friday, but it won't last. With 4 or 5 earnings warnings every night, I think at best people will just wait on the sidelines to see what pans out. I also think its inevitable that we'll get a warning from one of the big tech stock - then we'll see more downside . The rally today was all driven buy traders and computer programs. Several people said there was very little institutional money actually buying. Just a couple thoughts........Sorry to be so pessimistic.....

To: Hightechhooper who wrote (13008)	6/12/1998 8:07:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

(IBM - yet again) And if it was so earth-shattering why exactly did IBM go down 2 points after they made their 100 million $ announcement... Maybe because it is not so earth-shattering and in any case as the usual bonehead misinformed press is wont to do they are looking for connections when none exist... show me a good method of stripping out the fluctuations due to market, sector, stock and then the IBM announcement as far as LSI's price move is concerned and then I'll be impressed.... just telling me LSI was down 1+ points does not mean the entire drop was attributable to the 100 million $ announcement... I could counter by saying hey IBM went down 2 points after the announcement so their 100 million $ announcement MUST HAVE BEEN a negative for IBM as well ... as usual the clueless press foists an opinion on a clueless public with some magical implication of cause and effect... bunkum and more bunkum...