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

To: shane forbes who wrote (14907)	9/11/1998 1:41:00 AM
From: shane forbes	Read Replies (1) \| Respond to of 25814

Cadence continuing to "buy" engineering talent: techweb.com

To: shane forbes who wrote (14907)	9/11/1998 1:54:00 AM
From: Grand Poobah	Read Replies (1) \| Respond to of 25814

- that truly is very very good news - in particular note the semicustom chips supply conditions thing (they will worsen) and the inventory thing (build or maintain with no reductions) - usually when you see big aberrations like that it is a sign of an inflexion point. (LSI would theoretically be in the semicustom chips area - your XLNX definitely is in this category.) Sounds like good news. However, I thought it was interesting that while they expect semicustom chip supply to go down and demand to be up or steady, they also expect prices to fall or remain steady. Supply down, demand up, prices down. Whatever happened to the basic principles of economics? My feeling based on conference calls and earnings reports is that, at least in the PC space, the inventory correction is behind us, so we should see increasing unit volumes, but that the severe pricing pressure will continue for the near term. That view is not especially promising, but I think maybe I could still reconcile it with the Business Barometer report and say that nothing's really changed yet. However, you are familiar with the history of the report and have a better feel for its import and what the change of sentiment really means. Regards, G.P.

To: shane forbes who wrote (14907)	9/11/1998 1:59:00 AM
From: uu	Read Replies (1) \| Respond to of 25814

Shane, Thanks for the link. I appreciate it if you can elaborate on the data provided in that link. You state: > in particular note the semicustom chips supply conditions thing (they will worsen) and the inventory thing (build or maintain with no reductions) - usually when you see big aberrations like that it is a sign of an inflexion point. (LSI would theoretically be in the semicustom chips area - your XLNX definitely is in this category.) I am a bit confused as how to interpret the data. On one hand the survey states that 50% say that prices over the next 60 days will fall for semicustom chips (as oppose to only 3% saying they will rise). On the other hand 80% believe the supply of semicustom chips will worsen! My question is, shouldnt lack of supply and increase in demand translate into higher prices? Am I missing something here? LSI is my largest core holding followed by XLNX and CPQ. XLNX to my surprise is trying very hard not to fall below $33 (my average share price of course is at $43!!). But I appreciate it very much if you can give your opinion about XLNX. Regards, Addi Jamshidi