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

To: Beachbumm who wrote (18599)	5/28/1999 1:15:00 PM
From: shane forbes	Respond to of 25814

Beachbumm: Growth stocks can be held for a long time - cyclicals cannot and should not. This means you can't hold GM and Ford, you may be able to hold some of the software and healthcare stocks indefinitely. Again I think the sell criterion has to be weakness in the underlying businesses and lowered anticipated returns over the buyer's holding period compared to other possible investments. Semis go through cycles of investment and profit and thereby have to be sold when the cycle turns. I don't consider LSI or any stocks with large fixed expenses (such as huge depreciation costs aka fabs) long term never-sell type stocks. When anticipated cash flow wanes the stocks will get hammered as the risks of owning them increase. LSI raised cash in 1995 through an equity offering and so did many others - there was the cue to sell.