Broadcom (BRCM) Message Board

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Technology Stocks : Broadcom (BRCM)

BRCM 54.67

0.0%

Feb 9 4:00 PM EST

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To: Stoctrash who wrote (5661)	3/7/2001 5:39:21 PM
From: Bernard Levy	Read Replies (2) of 6531

I usually use price to sales to figure out the ``fair'' price for semi companies. For a good (i.e. growing and well managed-- BRCM fails the second test) company a P/S of 5 is reasonable. For BRCM this gives $25. As a side comment, the core group of engineers that started BRCM is very impressive. They failed by trying to ``blitz'' themselves into the next INTC overnight instead of following a more deliberate approach. They might have gotten there in about 10-15 years, but Nicholas was in a hurry. The hypergrowth he tried to achieve means also that the high quality of the original engineering talent has been diluted.

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