I've seen a number of posts quoting "50%" future growth projections. One should understand that "50%" is generally a generic number meaning ">50%" or "50% minimum". That is one reason why you will almost never see a 5-year number from Zacks or First Call that is >50. Even companies that analysts are estimating 100% growth will most likely appear as "50%". (my perception).
Black-Scholes - Where is this "competition" you keep referring to? Repeating my post on the C-Cube Bulletin Board, "experts" have said for years that "competition" would have an adverse impact on Intel and Cisco! It hasn't happened!!! Shareholders for INTC and CSCO have seen triple digit returns while those investing in "competitors" such as AMD, CYRX, ASND, FORE, NN, COMS, etc. have made little or even lost money (with the exception of those involved in mergers). I believe it is an absolute necessity to recognize the benefit of being the current (or past as you say) market leader. With the constant innovation coming out of BRCM, competitors can't keep pace with current products much less new ones!!!
I would challenge you to examine a portfolio consisting of C-Cube, 3-Com, AMD, Fore, and other "challengers" and compare it to a portfolio consisting of Microsoft, Intel, Cisco, Broadcom, and other dominant market leaders. There is NO comparison.
(Again, I am long BRCM) |
