Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Yamakita who wrote (14549)	8/25/1998 3:40:00 AM
From: rairden	Read Replies (1) \| Respond to of 25814

Jan 2001 leaps at strike price 20, costing $4 today? So to profit by expiration, 28 months away, you'd need say 9 1/2 points gain from present 14 1/2, or 65 percent appreciation in 2.3 years, which annualizes to 25 percent per year. I'm bullish on LSI but I'll be impressed if price begins to appreciate at 25%/year beginning immediately. Yes we've lost a terrible amount of value, but from the P/E I hardly think the stock is oversold yet, given the uncertainty of next year's earnings now. I shudder to think how our investment would be valued if "LSI loses .50/share for fy 1999" as getgo234 fears. Of course the lower we go, the more possible a future run-up like 1992-95 which started at $3 and gained 175 percent per year three years running. Also the more possible we go bankrupt... Investing in LSI today is not a "no-brainer"; it is a speculative bet that the company will come through this downturn smelling like a rose due to successful marketing of the fruits of all their recent R&D expenditures. Today's sellers are those who no longer trust that management can pull it off. I don't plan on folding anytime soon, but I've already bet my personal limit so no more averaging down. (And no more contest entries, maybe.)