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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST
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To: Black-Scholes who wrote (2731)9/21/1999 8:03:00 PM
From: yzfool  Read Replies (2) of 6531
 
When MOT continues to fumble the ball as they did with the G4 and AAPL, BRCM will be there to bail them out. Furthermore, here's a thought:
Money Talk: I have a question about your recent answer regarding DSL. Where does Texas Instruments stand in your analysis? Is Lucent ahead of them???
Harmon: TI {TXN} has done a good job with its DSL chipsets and landed high-profile customers including Samsung and Hyundai. It also works on cable Internet chipsets. As such, I would place it more in competition with Broadcom {BRCM}. But keep in mind that TI generates revenue from a variety of chips and technologies. For the first six months this year, revenue reached $4.39 billion -- flat vs. same period last year. Net income was $567 million.
TI's market cap was at $69.5 billion September 20, while Lucent {LU} is in a different class, wider scope and much bigger fish. LU market cap was north of $210 billion. Lucent is a much broader scope of networking stock while TI more chipset driven. If TI wanted to scale I believe acquiring Broadcom makes sense. Not very dilutive and BRCM has positive earnings and leading DSL and cable Internet chip marketshare. BRCM closed yesterday at $10.9 billion market cap with a run-rate $425 million revenue for 1999 and real net income for an Internet stock, possible margins of 10% if current results continue.

If you have a question for Steve or a comment about today's

(taken from cnbc.com 9/21/99)
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