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

To: uu who wrote (14937)	9/11/1998 5:07:00 PM
From: shane forbes	Read Replies (2) \| Respond to of 25814

Addi: I would not touch any "untouchable" cash reserves. Doing so would be asking for trouble. Many people appear to think of individual stocks in isolation and not within the context of the performance (and risk characteristics) of the entire portfolio. I would also not get too excited about reducing the cost basis on LSI from 27 to 22 (thereby increasing further the company risk associated with owning a large portion of one's assets in one stock). If LSI starts going up (one of these years) it will be a very large increase in a very short period of time and the difference between a cost basis of 27 vs. 22 won't matter too much. I think this stock seems to have all the earmarks for that kind of "short" term (over a 2-3 year span) large percentage point (8-10 bagger) move. Then again there is always the real possibility that things could go dramatically wrong... LSI is around 6% of my non-IRA (likely around 10% based on cost - that's what happens when the portfolio tanks fast - 10 becomes 6...) and around 25% of my IRA I think. That's about the right %ge allocation of company risk for me. Buy some medical or insurance companies to diversify the risk - there are some superb companies going for cheap these days... Shane

To: uu who wrote (14937)	9/11/1998 5:26:00 PM
From: Jock Hutchinson	Read Replies (2) \| Respond to of 25814

Not a good idea at all Addi: Two things you never want to truly risk are your family or your health. If I take the action I am contemplating, I will do neither. I will be merely reducing a portion of my downside risk in relatively low beta stocks. This is a dramatic difference from investing cash. Cash (or its equivilent) will always be King. Indeed, the worst thing that could happen if you took this tack would be for you to succeed. It would only encourage further reckless behavior to which you would ultimately succumb.