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

To: patrick tang who wrote (18196)	4/20/1999 9:55:00 PM
From: uu	Read Replies (3) \| Respond to of 25814

hmmmm.... Can someone please guess why on earth this lady is making millions every year?! From biz.yahoo.com on April 20, 1999 with LSI logic at $36/shr, one Ms. Erika Klauer of BT Alex Brown said: '... we are growing increasingly confident that the company will be able to meet our 1999 and 2000 earnings per share estimates of 75 cents and $1.50, respectively,'' said Erika Klauer, a BT Alex Brown analyst, in a note to clients. ''Visibility is the best the company has seen in two years.'' On 09/02/1998 (exactly 7 months ago) the same Ms Erika Klauer with LSI Logic at $11/shr in a note to the same clients said (for the full report please see siliconinvestor.com : The confluence of numerous market and competitive factors, including the negative impact of the weakened yen, the increased competition from larger vertically integrated competitors (such as IBM, Texas Instruments, STMicroelectronics, Lucent and the Japanese companies), and new competition from Cadence and the foundries, has resulted in increased competition and pricing pressure in the ASIC market. While the effect of these pressures has been exacerbated in the near-term due to the slowdown in the semiconductor market, we do not expect these factors to disappear as the semiconductor cycle begins its next growth cycle. As a result, we expect increased competition and pricing pressure to limit the revenue growth and profitability of LSI Logic... Now here is a simple test: 1. Are Ms. Klauer's clients a bunch of morons with too much money who do not know what to do but to waste it on her living expenses? 2. Is Ms. Klauer a known schizophrenic who has extreme out of body experiements on a daily basis? 3. Is Ms. Klauer a typical Wall Street con-artist who at the expense of small investors is willing to say anything to benefit her big shot rich clients? 4. All of the above. Analysts continue to amaze me and I wished I knew what I need to do in order to become an analyst to make millions of dollars for simply making self serving comments.

To: patrick tang who wrote (18196)	4/20/1999 10:02:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 25814

Hi Patrick - What exactly are your quarterly estimates? Two years of positive growth say at 20% for Q1-Q4 and 25% for Q5-Q8: Also assume next quarter they can earn the $0.18 stated in the conference call.... Q2 $0.18 Q3 $0.22 estimate @ 20% Q4 $0.26 estimate @ 20% ------------------------------YEAR 2000-------------- Q5 $0.31 estimate @ 25% reflects ramp up of Sony Play Station ============================Total FY 2000 = $ 0.97 Q6 $0.39 estimate @ 25% Note: Free Flow Cash Flow will be very Q7 $0.49 estimate @ 25% positive and growing. Q8 $0.61 estimate @ 25% Q9 $0.76 estimate @ 25% ----------------------------Total FY 2001 = $2.25 at 25x PE price of stock should reach $56.25 The market will anticipate this future price based on continued positive earnings growth and how fast LSI can exceed the estimated growth rates. Based on the conference call, there is every reason that the above estimated earnings could be achieved faster, perhaps by end of Q1 2000. Current price at $36 reflects an expected annual earnings amount of $1.44. A $40 price yields a $1.80/annual and a $50 price expects a $2.00/annual rate. The question is how far and how fast can the earnings grow once we are on all cylinders? I would say two years or eight quarters may be optimistic but at current prices we still have a ways to go. My price target is $56-$60 by the end of January 2000. Also I bet it will fluctuate by $10 to the upside and down side over this period. EKS