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: Jock Hutchinson who wrote (15722)	10/16/1998 6:58:00 PM
From: uu	Respond to of 25814

Jock: If the tone of your post is meant to make someone like me ready to see the single digits for LSI stock price shortly, it certainly is working. And perhaps todays $11/shr will be the 52 week high for the stock next year. I sure hope not but from the sound of it, it seems that would be the case. Painfully interesting indeed... Regards, Addi Jamshidi

To: Jock Hutchinson who wrote (15722)	10/16/1998 8:56:00 PM
From: patrick tang	Read Replies (1) \| Respond to of 25814

Regarding Gresham: the building will be already up and running. And that is not cheap - Lehi's empty shell cost MU I think $800M! After that, the fab can be started up in modules by adding equipment as needed (already that is easily said than done, with lead times, have to predict the right time tables of when to add). And adding equipment is mostly depreciation, minimum expanse. One thing about Japan I want to add: their 'recession' is different from others. The average Joe still have money, even though their Tokyo apartment is no longer >$1M. If the confidence is restored, if a Reagan comes out and say "Don't worry! Be happy! Spend!" the whole consumer spending thing can turn fast, just as with US and Reagan. Regarding the world economy, I think we've just about hit bottom. I was worried two weeks ago when the rate cut was only 1/4%. That, if left in place and the stock market going down, would probably have tanked US housing starts and consumer spendings. I am thinking about selling a property. Went out 2 weeks ago and looked - the market was just about dead! Couldn't really find a 'good' price - too much inventory, nobody wants to part with theirs, nobody wants to make any offers, no sale, no price. That was scary. With the last rate cut, I think we should get stuff moving again. Even if prices go down 10%, it's OK as long as things do move. I have my own special reason why I am so patiant with the stock. That is absolutely not for anybody. The SOC thing IMO has not even started. With 0.25um, we'll just get a sample of what it can do. with 0.18um, perhaps US market. At 0.12um, truly world-wide markets. Been one touchy week until the rate got cut. Off for some R&R, may the Niners kick .ss this weekend. Wish U-all nice weekend. patrick PS With regrads to Y2K, I read some forecast by some HP guy I think, he mentioned that HP is forecasting hardware expenditure to go way down after the first half '99. Such is life. Personally, I believe your forecast better. But equipment upgrade will also benefit LSI too - networking, storage etc.

To: Jock Hutchinson who wrote (15722)	10/16/1998 10:23:00 PM
From: akmike	Read Replies (2) \| Respond to of 25814

Jock-thanks for the usual superb cc summary. I share many of your concerns for LSI's profitability for the next 9 months. The share price impact could be 3-6 mo. however depending on how much forward visibility evolves. I don't understand how your thesis of y2K hogging corporate IT budgets specifically becomes so much doom and gloom for LSI. I could easily be off on my assessment but looking at LSI's 6 new operating divisions this is how that stacks up to me: consumer-neutral; networking-positive;storage components-positive;telecommunications-neutral;computer applications-negative;storage systems-neutral. net-net=neutral. Surely not a disaster? I don't think we can project the Symbios margins from the 3Q breakout or even 4Q if we were to get such a breakout. LSI has moved very rapidly to assimilate this acquisition and everything from design to sales (vice-versa?) has changed. I would certainly hope that LSI's manufacturing yields at Gresham will be better than Colo., for example. At any rate, I wouldn't see the stock going up much in the near-term and who knows where the bottom will form. Sideways for 5-6 months is my best guess but as we have seen over and over again this sector of the market doesn't lack for volatility and a sudden move up or down anytime shouldn't surprise. For those of us that got on board too early most of the world doesn't care and some of us will be true die-hards. Best of luck to all, Mike