LSI Corporation (NYSE: LSI) designs, develops and markets semiconductors used by original equipment manufacturers in the data networking and consumer electronics markets. It also provides a wide variety of storage systems, sub-assemblies, and storage management software applications. In August, the firm signed a definitive agreement to sell its mobility products business to Infineon Technologies (NYSE: IFX) for $450 million in cash and a $50 million performance-based payment. The sale was the result of a strategic realignment, following LSI's April merger with Agere Systems. Top clients include Hewlett-Packard (NYSE: HPQ), IBM (NYSE: IBM) and Sony (NYSE: SNE).

The stock has been a steady gainer over the past two months, in response to such issues as the mobility products sale, a new $500 million stock repurchase program, the sale of semiconductor assembly and test operations in Thailand, the acquisition of fabless chip producer Tarai, new product announcements, and generally favorable analyst commentary. Shares have been advancing through a positive trading channel. The price is currently positioned at the base of that channel, suggesting the potential for a turn back toward the top.

Brokers recommend the issue with three "strong buys," four "buys," five "holds" and a "sell." Analysts estimate a 110% growth rate, through the next year. The LSI Price to Sales ratio (2.49), Price to Book ratio (1.12) and Sales Growth rate (36.82%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 86% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past fifty-two weeks, it has traded between $5.99 and $11.08. A stop-loss of $6.35 looks good here. Note that the firm is next expected to report quarterly results on October 24, after the close.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.