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

To: Grand Poobah who wrote (13297)	6/29/1998 4:31:00 PM
From: Hightechhooper	Respond to of 25814

GP, Thanks, but I am not trying to influence anyone. This is just an outlet since I have some time on my hands right now. Regarding the fibrechannel synergy...I am not sure there is much there because LSI has not invested substantial amounts in this area. yes, they are targetting it and it will provide some nice growth, but there is not a lot of compeititon for that in the dd sector now and so LSI has not had to invest much R&D to get to this point. It is for this reason, that I still view the synergy as minimal in this area (because there are simply not enough costs to be levered). From the articles I have read so far I think that is the developing concenus. This give LSI access to more markets but the question is still "can this access be translated into added market share" because of what LSI / Symbios can bring that Symbios alone couldn't. That is an open question in my mind and will take 18 months or more to answer. Meanwhile, the expected high growth in datacom, telecom and digital consumer will be diluted over a larger revenue base making the growth rate for the combined company lower than if LSI was stand alone. So, overall, the earnings will be up a little offset by a slower growth rate leaving not much left to create value with the exception of the POTENTIAL for some new products that could take market share. but, as you have said, ADPT is tough competition and they are fighting and scratching for every penny right now so they will certainly not rollover and let LSI march off with their business. It will be a fight and margins will suffer. For the shareholders the best action would still be a sale of LSI to a bigger player in the industry, but Wilf's ego and desire to be the captain of the ship will prevent this from happening. For the record, I greatly respect the technical expertise you bring and I find your posts very enlightening (although I don't always agree with your interpretation of the facts). When I said earlier that engineers create the real value in this society, it certainly was a complement and should have been taken as such. Best of Luck to you,