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

To: FUZFO who wrote (13691)	7/20/1998 3:28:00 PM
From: Hightechhooper	Read Replies (1) \| Respond to of 25814

Fuzfo, Better ask Jocko what he thinks, he is the master of this stock. Funny thing though I thought he said this stock was under rapid accumulation late last week and he called me a liar for even suggesting that heavy institutional selling pressure was present with no signs of relief. The other thing that Jocko promised was a blistering conference call on Thursday with significant visibility on a rapid growth track begining in the second half. We'll just have to see about that one. The trading pattern today is self evident, there is nothing that I can really add and I don't know how far it goes down before someone wants to take a chance on this thing. It is already lower than I could have imagined and the panick selling we are seeing means that something really bad is going on OR in a difficult industy environment no one trusts LSI management and they are trying to avoid a Gresham bomb that may or may not expode in Q4. Either way, we are the big losers in this deal. LSI's reputation for not communicating openly and honestly with the investment community has doomed us all (as well as the lack of communication in general). Even if the results are OK, a positive call will only get us back to 24-25 at best and the trading is suggesting that a positive call is not in the cards. I don't exactly know how the wheels could have fallen off the bus so quickly but maybe they did. They have taken on much more than they should have with Gresham, Symbios, a HUGE R&D budget and trying to convert their R&D line to 8inch wafers during this qtr. Each of these puts a significant burden on the business and means your sales have to go exactly as planned to have any hope of coming out alright because there is no way all those operational issues will all get resolved in the best way. It seems like sales will not go as planned either as Cube recently reported that current projections for dvd sales are now 1/3 the beginning of year number and sales of dcam's have been very disappointing and highly competitive. The conf call is now a 70/30 thing IMO (bad to good). To preserve profitability they could delay gresham for another 3-6 months until they get to some of that gsm and sony 2 volume in early to mid 1999 but they may choose to just tank profitability and get that thing started because they have shown they don't care about the stock price at all, especially in the shortrun. The other times that I can remember LSI selling off in advance of a conf call, the news has not been good. The question no one has the answer to is "how bad is it and how much is already in the price?"