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

To: uu who wrote (14721)	9/2/1998 8:13:00 PM
From: Jock Hutchinson	Read Replies (1) \| Respond to of 25814

Can LSI be punished further? Sure. The issue is not one of anticipated slower chip sales per se, but rather LSI's financial future. LSI will be taking a large writedown on Symbios; it is incurring additional ongoing debt to purchase Symbios; and Gresham is a high class white elephant. For the short-term investor, I can think of no compelling reason to purchase LSI right now. And it is certainly true that a management that announces an earnings shortfall no more than one month after stating that earnings would be "flattish" has serious credibility problems--even if the shortfall was unanticipated and out of its control. Who wants to mess with the sort of visibility that can't even predict a halving of earnings in a month. The market is essentially saying that after the writeoffs, debt incurred for Symbios, and Gresham are factored in, LSI will either make zero profit and/or is only worth its previous book value. Am I long-term very bullish on LSI and its management? Absolutely.