Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DavidG who wrote (13286)	6/29/1998 2:01:00 PM
From: E.H.F.	Respond to of 25814

DavidG, I agree with you. Hopefully John Dessauer will give us his take on the acquisition on Friday hotline. If he does, I'll post what he says. E.H.F.

To: DavidG who wrote (13286)	6/29/1998 2:35:00 PM
From: Hightechhooper	Read Replies (2) \| Respond to of 25814

DavidG, I am sorry you feel that way, it is obvious that you are really caught up in the emotion of wanting LSI to go up (as I am) but your views about the benefits of this deal based on fundamentals are very wrong and completely based on hope and not fact. Don't you think if this were such a great deal the stock would be flying right now, especially since it was cheap to begin with? What is your explanation for that? Do you think I am moving the stock down with my opinions? Why do you think $750 is cheap, let's hear your reasons? What is the impact on net earnings? Where will costs be reduced? What new product opportuniites will be created? Let's see some substance to back up your hopes, I am open to being convinced if you have the facts. This business is not growing so the P/S ratio can be very miss leading to use as I have said. I won't go into any more detail about why this deal lacks significant value creation over the short and medium term timeframes. Possibly there are systeme level integration opportunities for the longrun, but those are far out. BTW, all the things you outlined in your message that were meant to show synergy only support my contention that there is very little to be found. That is why corrigan said the business is complementary to LSI's strengths. Good Luck, PS I believe S&P just reiterated their hold rating on LSI after taking this deal into account. Maybe you should try to convince them of this "great deal", it will help you (and me) a lot more.