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

To: rairden who wrote (18446)	5/15/1999 1:56:00 PM
From: patrick tang	Read Replies (1) \| Respond to of 25814

..Their ten displays and demo's around the back of the room: SGI workstation, HP Scanjet 5200C, Xerox 265 digital copier, Sun Ultra workstation, Metastore workgroup storage system, PCI RAID system, PlayStation 2, L6402X single chip DVD decoder, DCAM 103 single chip image processor, and single chip CDMA baseband processor Nice customer base (very important for it lets LSI knows what is coming down the pipe), nice products, can't ask for too much more from a 'broad based' general product company. Would have loved to see that PSII - should have gone to the meeting myself in hind sight. I'll make sure to go to the next one. I found that the best way to predict whether a consumer product would sell is to simply ask myself whether as a really cheap consumer, I'd buy one. If they can sell me, then the product should be a huge success. On a side note, the digital camera is starting to get there for me - a 2M pixel with silver halide resolution and <$400 will sell me. I think we'll be there this X'mas. The Japan fab is 6-inch wafers at 0.35 micron, high volume I initially thought that fab was 1um/0.8um stuff and just filling up because of end-of-life buys. 0.35um means they are getting a lot of orders on 'existing newer' products. Wilf initially thought they would shut that down beginning of Q2, then it was July at Q1 earnings, now even extending into Q4?! No wonder the stock's been holding up so well the last week. I think the 5% - 6% sequential sales growth is a done deal, as well as margin increase being on track. I would look for LSI to deliver just that, 5.5% sales increase with 0.19/0.20 profit (since consensus is $0.18). Any extra stuff will be pushed back to Q3, a traditionally slower Q. Pull in some from strong Q4 into Q3, perhaps Q3 will show continue to show the sales growth too. That would be great, just guiding the street upwards slowly but surely. .. Also said they are still undecided whether next fab in Gresham will be 8-inch or 12-inch; here's where the statement about wanting to be tenth to adopt 12-inch came in. If next 12 in is going to come on line in end of 2002, it means they see current line totally maxed out maybe a year before then. Currently Gresham is only 25% equiped I think. They must see a lot of growth ahead for the next two years. No wonder they are thinking about going out to tie up some extra foundry space now. If they can do that, perhaps then they can build a 12" next and not the last 8". If they fill the current Gresham line up in the next two years, we should be in the money. Comment that the next two or three years should be very good -- last time I heard Wilf being this confident of the future was the annual meeting in 1992 when he told a disgruntled shareholder to just hang on for a couple more years to be richly rewarded. 20-fold appreciation followed in the next 40 months. LSI appears to me to be even better positioned this time around You've just rang the right bell for me .... I'm saliving heavily now. If Wilf does that for me, he's my hero. Now if only Wilf will call off his pack of legal dogs that are appealling that Muslim school decision and stop attacking the children ..... That stuff is nothing but legal harressment. patrick

To: rairden who wrote (18446)	5/15/1999 7:17:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 25814

Rairden, (Drove to Reno for the weekend to get any gambling urges out of my system.) Does Reno do it for you so that you can keep hands off the internets? Is that the gambling you're talking about? We talked about going to Vegas for the Interop network convention, and etc., but did SF instead, wrapping a weekend around the LSI meeting. It was a good choice. Thanks for the corrections to my notes and what you added, which was significant. Is LSI OK with going up considerably more from here, which seems to be the feeling here, considering their earnings are projected to be $1.89 in 2000 by First Call? 2001 may also be the last year of the up cycle. Appreciate comments. Tony