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

To: Uncle Frank who wrote (15316)	9/29/1998 3:35:00 PM
From: patrick tang	Respond to of 25814

LSI, VLSI, no difference ... 1/4% rate cut won't change expectations nor earnings. Overseas choking of high interest rate. They can't lower if US does not lower. Look for dead money till past X'mas. But year-end tax selling should create for some nice buying opportunities. patrick

To: Uncle Frank who wrote (15316)	9/29/1998 10:54:00 PM
From: shane forbes	Respond to of 25814

UF: I would not necessarily call it a "rare buy" since it has been at this level (and considerably below book) for quite some time. This is a function of the ERICY connection and all the funny things going on there at VLSI - esp. the management snafus. Also a history of underperforming does not help the stock either (look at the stock action during this decade and you'll see what I mean). Nevertheless "free" companies (even if they are going the DIVX route <g>) are a reasonable risk IMHO. Sure they could go kaput but that cash floor provides a reasonable level of comfort (at least over the next little while). The other negative is that they will be taking a charge this Q for the layoffs etc and that will reduce cash by some unknown amount. (Yet they have a sizeable chunk of cash and it should not be too big.) But hey if all these things did not happen the stock would not be near cash value! Though we could always be surprised, it is an acceptable risk to me at this level FWIW. On the positive side, compared to a typical semi company, because of their fab partnerships etc, they should have lower cap expenditures going forward. Plus they are likely winning many design-ins. At any price, there has to exist someone to be the buyer - this time around, I just happen to be one of the fools. <ggg> Shane.