Broadcom (BRCM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Broadcom (BRCM)

BRCM 54.67

0.0%

Feb 9 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Stoctrash who wrote (5418)	2/10/2001 7:11:02 PM
From: Jay k.	Read Replies (2) of 6531

Hi FredE, I recently decided to buy some BRCM at current levels. If what analysts are forecasting comes to pass.. and BRCM makes $1.35 for fiscal 2001 we are looking at a forward p/e multiple of $77/$1.35 = 57 pe If you look at the last 4 quarterly earnings Mar/2000 (.18c actual vs .16c expected) Jun/2000 (.23c actual vs .19c expected) Sep/2000 (.30c actual vs .24c expected) Dec/2000 (.32c actual vs .31c expected) we get earnings of $1.03 trailing 2000. For a trailing pe of 74. so analysts are forcasting a 31% growth rate for 2001 vs 2000 comparisons. This seems very modest to me in terms of where brcm will be by the end of 2001. But for arguments sake, lets say BRCM goes nowhere during that period and ends Dec 31st at $77(current close). We are now looking at BRCM with a trailing p/e of 57(if they announce no upside suprises/or downside suprises) still expecting to grow at lets say 30%(slightly lower forcasted growth then what most analysts project for the next 3-5 years, but reasonable with how quickly the internet is still growing both here and globally). With these numbers to support BRCM, I feel comfortable entering this position. I will add if BRCM continues to sell off .. but I really do feel these levels will hold unless the NASD itself continues to erode. If the NASD continues to erode then of course BRCM will continue to fall along with everything else as multiples contract. Even this seems contrary to me, considering that multiples expand during a period when the FED starts cutting interest rates..but I guess the street feels that earnings are falling faster then how quickly the FED is easing. As I examine BRCM Its management seems superior. Its technology is bar-none the best. They have incredible talent in employees. Its market valuation is reasonable- considering GE has a p/e of 35 with a 15% growth rate. MSFT a p/e of 32 with a 10% projected growth rate. CSCO a p/e of 68 with a projected 30% growth. So your "So much for that forward PE talk...." What does this mean???? Forward PE still seems fine. At what levels would you buy BRCM if ever? Thanks for any input into this.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next