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

To: uu who wrote (17542)	3/26/1999 4:16:00 PM
From: Jock Hutchinson	Respond to of 25814

The reason the stock price will be in sync with the company's future great performance is because the near-term forward look has never been so positive. Let's take a look at why LSI's stock price has been in the sink for the past three and one half years. 1. A record slump in the semi industry, which was exacerbated by not only the usual overbuilding but a change in inventory policies as well a serious recession in SEA--an area to which LSI's customers do much business. 2. The Gresham plant, which clearly harmed the bottom line during the past three quarters 3. The purchase of Symbios, which near-term also hurt LSI's bottom line 4. The extraordinary amount of money that LSI spent on R&D during a time period of steady revenues. Were it not for the increase in R&D, LSI still would have had a stock price in the 40's. Yet all of these are past now, and the only oncoming train that can derail LSI is a global recession. Addi, the forward look on LSI right now is $1.75 a share for '00. That justifies a price of at least $42.00 a share in nine months. Making a 50% return on one's money is still an excellent investment as far as I know, and for people such as myself who were clearly a year early into the stock at around 23, It is still a superior two year return. Moreover, where are you going to put your money now? YAHOO? DELL? Those parties are over and done with. the mop up crew is coming in. By contrast, LSI has the potential to be one of the truly superior performers over the next 24 months. It's not just about to come to market with superior products, but these product lines appear to be sustainable for a number of years.

To: uu who wrote (17542)	3/26/1999 5:01:00 PM
From: Andy M.	Read Replies (2) \| Respond to of 25814

Addi, I understand your frustration with LSI, but I also remember that you got impatient with SUNW about a year ago, after being the supreme SUN bull as the stock languished in the 30s and 40s for a while. You gave up on it, and then look what it did. I know you got back on board there--and maybe pretty early? I don't remember. Anyway, it's funny. I also sold my full position in sun maybe the day before you did and bought back 1/3 of what I had, at the advice of my wife, and so have been on board there since 43--but with fewer shares. I see you coming to the moment of capitulation, then, as a very bullish sign for LSI. I am very close to breakeven on LSI and will not be selling until I ride out the run-up that I just know is right around the corner...or the next corner... Andy