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

To: E. Graphs who wrote (13273)	6/29/1998 10:14:00 AM
From: DavidG	Respond to of 25814

E! Some heavy buying starting to come in for LSI. As you pointed out the momentum is starting to really pick up. Oddly enough the opening was very weak like everyone was waiting to see who was selling and they picked up the cheap sales. DavidG

To: E. Graphs who wrote (13273)	6/29/1998 10:16:00 AM
From: Jock Hutchinson	Read Replies (1) \| Respond to of 25814

At second blush, this isn't a great buy, it's a terrific buy. Consider that there is no dilution of the stock; that for the most part, LSI had the cash on hand. Assuming that the '97 profit of $60 million carries forward, this gives LSI a projected '99 earnings of $1.90 to $2.00. That gives LSI at today's prices a forward looking PE of 12. With a long term PE growth rate of 20 to 25 percent, this stock should easily be priced in the mid to high thirties today.