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Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Glenn who wrote (5672)	11/8/1998 7:15:00 PM
From: nokomis	Read Replies (1) \| Respond to of 7247

Glen, You might want to tune into LSN's thread/news released/web page, etc. for more precise background, but my intuition and DD tell me this company has been incredibly oversold. The CFO told me their reasons for coming in under (how much "under" no one knows) consensus estimates was not a liquidity issue/customer loss/or cash related. After pouring over their last SEC submission, I am guessing it will be a one time writedown of leasing inventory owing to recent broad-based launches of lower-priced PCs...an "obsolescense" issue and not an unexpected occurence given their business is in a high-tech industry. I view this as a particularly short-term impact on their overall profitabiity and believe analysts will be told this at LSN's accompanying cc (waiting for details of announcement). Hence, I think it will have a very rapid return to trading levels in the 20's as they're a fundamentally sound company in a high-growth industry...this company reminds me of a "baby Newcourt Credit" and, as such (and this is JUST a gut feel/no basis for rumour statement) is ripe for a possible takeover in an area where consolidation seems to be rampant. LSN lost Dell's business to Newcourt in '97..Dell and NCT make a fine team...wouldn't LSN be an interesting acqusition for NCT or GE Capital as an established entry into the lower-end PC leasing market? - just a dream! In the end, however, LSN is a profitable company trading at below book value. They should know better than to "surprise" and embarrass the investment community with cautionary warnings that their results "could come in substantially below" analysts expectations. I don't think the news will be all that bad - and I want to hop a ride on the way up. If it takes longer than a few days (at which point LSN can begin exercising their previously published share buyback plan) I still think the upside potential is significant, in a relatively short time.. Yes, it's a sizeable gamble I am taking, so keep your fingers crossed and think of me at the open! Regards, NOK

To: Glenn who wrote (5672)	11/8/1998 9:39:00 PM
From: nokomis	Respond to of 7247

Glenn, More info on LSN follows. With over 76% owned by institutions, a PE of 5 and change and the recent dramatic drop in price, LSN is in the doghouse with the big boys (who have already revised estimates for this quarter from .50 to .41)..however, when results come out tomorrow night, there's a good chance LSN could actually beat the "revised" estimate of .41 and the analysts will have saved face...should be interesting to see where it opens Tuesday a.m. after earnings announcement. Have a look...be sure to read alerts at bottom of page: investor.msn.com