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

To: jelrod3 who wrote (14366)	8/19/1998 12:56:00 PM
From: Mark The Trader	Respond to of 25814

Jelrod, I watch a lot of stocks during the day , and have seen this type of activity happened more times then I can remember before a news event that has a major impact on the price of a stock. Usually what I see is Large option volume along with a spike in trading volume. So leaks of this type are frequent. Do I condone it ?? nope , but that's part of playing the market. Now I suspect that there will be a class action suit filed, why?? Because a month ago LSI said that The 3Rd quarter will be flat and now they warn that about a decrease in earnings and revenues. Will this suit affect the bottom line of LSI ? , nope, they usually never do . Should holders of LSI Be concerned about Class Action Suits of this nature ? nope . It is usually many years before these suits finally make it to court and get settled for pennies on the dollar. As for a guess of how low the stock will trade , with a book value of $ 11.50 I doubt LSI will trade down to book value , unless they start to project losses or more doom and gloom noise about Asia as a whole continues to surface. I looked at VLSI and that did trade down to book , after its warnings. I don't really follow that stock so don't know the details about their earnings projections and don't have the time to look. So in summary, the stock currently looks like shit smells like shit and taste like shit, but it is cheap. If it gets much cheaper your going to probably get takeover rumors. Probably a good time to average down or jump in for a long term hold. My contrarian thoughts. Mark