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

To: Tony Viola who wrote (16797)	1/30/1999 4:35:00 PM
From: Jock Hutchinson	Respond to of 25814

Tony: You are absolutely right of course, but it is the greater use of design tool companies that provide for the fabless companies. The important point is that this provides LSI with some protection on its flanks both with respect to design tools and also it could make LSI into a fabless (or at least slightly fabless) semi company. More important yet is the fact that it is the design tool companies that are expected to grow at 25 to 40 % a year in the foreseeable future, which accounts for their price to sales ratio in the 5 to 6 range, which of course is much higher than LSI's current price to sales ratio. As such, this little jewel of a company could ultimately contribute significantly to LSI valuation as well as LSI's productivity, given the fact that its sales increased three fold last year.