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Technology Stocks : Broadcom (BRCM)

BRCM 54.67

0.0%

Feb 9 4:00 PM EST

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To: Didi who wrote (4991)	12/20/2000 2:08:09 PM
From: edamo	Read Replies (1) of 6531

disu....who and more importantly why would any company pay 21bil for an immediate 1bil in added revenues, considering that brcm is a fabless operation...the buyer would gain ip, existing customer base, but no assurance of capacity as no plant and equipment exists...very few large enough to even consider...jdsu not financially capable of such a transaction....the days of inflated share price buying other inflated share price are over...we now exist in the real world of old time debt financing....brcm only has a half bil cash on its balance sheet...a little company like atmel,has about double the sales, twice the cash, 1/10 the pe and 1/4 the market cap.......too me that would be a more attractive purchase... a lot of faith is being placed on forward pe's of high pe shares as brcm....the market is in a correction phase and is bringing the high pe's down to more realistic levels... nothing against brcm...went long in dec99 at 105, was stopped out two months ago at 209...just a bit too pricey, relative to a slowing momentum and market perception

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