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

To: Tony Viola who wrote (13922)	7/27/1998 6:51:00 PM
From: Jock Hutchinson	Respond to of 25814

Tony: Your post dovetails with my emerging scenario that a modest market downturn would be most beneficial to LSI. I would also point out that over time, mid caps have outperformed large caps, so I'll take my chances. Just spoke with Robert Sisson of LSI IR today. He made one remark which really caught my attention. When I asked him about various segments, he indicated to me that there is a great deal of frustration with the lack of infrastructure in "widening the pipes". Mr. Sisson says that there is now developing a further burgeoning interest in "widening the pipes" via wireless. While that will not do didly to next quarter's earnings or for that matter the quarter thereafter, it is interesting to speculate as to whether a critical mass could be reached such that "widening the pipes" is not done through cable etc., but instead is primarily done through wireless. Obviously a long time before this matter gets resolved, but he spoke of Microsoft and Intel's frustration with TCI. I'd love to hear your thoughts on this matter.

To: Tony Viola who wrote (13922)	7/27/1998 7:12:00 PM
From: Tech Watcher	Read Replies (3) \| Respond to of 25814

A valid negative point without any personal attacks! Poor public perception is definitely a negative to ownership of the stock. Let's look at two pieces of general criteria: 1) Are the company's fundamentals good or bad. 2) Does the company communicate this to the investment community in a good or bad manner. The two of these make up the all important public perception. I think number 1 is often related to number 2. The past year or two I think everyone agrees that LSI management hasn't been the greatest at communicating their message, whatever that might be. I think this is because they didn't have anything great to say. Even the LSI bears have remarked how impressive the last CC was. It also appears that they are selectively getting their message across to key analysts. Could this be because they finally have a clear vision and something positive to say? I hope so. I think poor fundamentals and an out of favor stock have been transformed into good fundamentals and an out of favor stock. Now comes the exciting part. At 20 times '98 earnings and 14 times '99 earnings there is nowhere to go but up. We can't predict for certainty great things for the stock, because public perception is more important than any of us would care to admit regarding LSI or any other company. If this weren't true, LSI would be trading somewhere between $25 and $30 right now. I have enjoyed watching all the selling take place while LSI continues strong support at $20. As MM's decide where to put this cash, I can't think of a better segment in general than semiconductors for the next market leadership. Out of semiconductor companies, I can't think of a better risk/reward scenario than LSI. To LSI management - We think you have the message to give and are encouraged by the promise of what the future has in store. Keep the improvements in communication coming. - Tech Watcher