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

To: Jock Hutchinson who wrote (14499)	8/22/1998 5:20:00 PM
From: getgo234	Respond to of 25814

Everyone: Article appearing in Investors Business Daily dated 8/24/98 headlines Samsung, Sony emerge in busy cell phone field. 'Shipments of digital phones in the U.S. quadrupled last year to 5.6 million from 1.4 million in 96 Dataquest says'. Dataquest expects the number to double this year. Is there anything positive here for LSI ? Does LSI provide communication chips to any of the major players including new digital cellular phone players such as Sony and Samsung ? Thanks for your comments.

To: Jock Hutchinson who wrote (14499)	8/22/1998 6:05:00 PM
From: thomas hayden	Read Replies (1) \| Respond to of 25814

LSI's book value will change by a minus of LSI's $760 million and a plus of Symbios' book value. I don't know what Symbios book value is but I'm sure they didn't buy them at book value. LSI's book will probably decrease by a couple of bucks

To: Jock Hutchinson who wrote (14499)	8/22/1998 9:16:00 PM
From: DanZ	Respond to of 25814

Jock, Thanks for pointing out that LSI paid all cash. I thought they used both cash and stock. But the main point was that the book value won't change. If LSI paid more than book value for Symbios, the difference will most likely be carried on the balance sheet as an intangible asset and depreciated over a long time (like 20 or 30 years). That's how most companies account for purchases like this. PS to Tom: If you believe in DVD, you might also look at VLSI. The stock is trading at book value, getting slammed along with LSI and the rest of the SOX last week. It's my understanding that VLSI makes the security chip for DVD players. I'm not sure if that's their involvement, but I do know that they make chips for DVD. BTW, I heard from a very good source that the LSI/VLSI deal was inked before LSI bought Symbios and the Board killed it at the request of Stein. Beyer went around Stein to the Board and they fired him instead of siding with him. Apparently Stein wasn't going to be given enough control after the merger so he killed the deal. It doesn't make a lot of difference now but I thought LSI investors might be interested.