It was six months ago to the day that I wrote about the potential for LSI (LSI),
highlighting both the upside if the company executed on opportunities
in flash, networking, and storage/servers but also the risk that the
path to prosperity would have some bends and potholes. That's proven
more or less true so far, as the absolute return over the past half-year
(barely positive) is well below that of rival Marvell (MRVL) and the overall Nasdaq composite, but second quarter earnings show some encouraging results.
Provided
that the PC market doesn't get even worse (and/or that Marvell doesn't
grab even more share), I believe there's still a case to make for LSI as
a $9 to $10 stock. While the real ramp in revenue growth and margins
isn't likely until 2014, improving sentiment towards chip stocks (at
least those outside the wireless space) could pull the stock along in
the meantime.
Click below to read more:
LSI Still Undervalued, As It Shows Hints Of What Lies Ahead
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