I think it was something else Dale. NVLS seemed to affect some of the semi stocks although it was uneven as AMCC rose 7%.
Here is an interesting yahoo post on BRCM. messages.yahoo.com
– BRCM shareholders lost an average of $96,247,505.04 per trading DAY as $48,508,742,540.00 in market capitalization evaporated over the past 2 years.
– The loss of more than $48.5 billion in market capitalization for BRCM is greater than the GDP of 162 nations.
– Despite such staggering losses in market capitalization, BRCM continues to be upgraded by analysts. As of Friday, there were still 6 "strong buys", 11 "buys", 8 "holds", but not one single "sell".
– Many of the same analysts who were recommending BRCM much higher still unabashedly recommend the stock. Morgan Stanley recommended the stock at $95 and recently recommended it again at $22.15 while C.E. Unterberg Towbin recommended BRCM at $115.63 and recommended it again at $44.16. Similar parallels can drawn from upgrades by UBS Warburg, Salomon Smith Barney, CIBC World Markets, and most recently, Frost Securities.
– $10,000 invested in BRCM two years ago is now worth $837.51, while $10,000 invested in BRCM just two months ago is now worth $7,274.73.
– BRCM presently trades at nearly 5.7 times sales, almost DOUBLE the industry average of 2.88 and more than FOUR TIMES the S&P 500 average of 1.22.
– BRCM revenues have declined 23.1% Q1 to Q1 over last year. Although revenues increased Q to Q the current quarter this year, Y-T-D revenues for the six months ending June 30th have declined this year over last.
– BRCM no longer has pricing power as gross margins have been declining steadily and sharply from 62.9% in 1999, to 58.2% in 2000, to 53.2% in 2001, to 44.1% for the first six months of this year.
– BRCM has now posted EIGHT consecutive quarterly losses totaling $3,819,888,000. Continued losses are expected well into the foreseeable future.
– The QUARTERLY loss for BRCM in Q2 was greater than its highest ever ANNUAL profit, and the QUARTETLY loss for BRCM in Q1 was nearly DOUBLE its highest ever ANNUAL profit
– BRCM lost more in 2001 than all of its combined SALES for 2001, 2000, 1999, and 1997. BRCM losses in the first six months of this year alone already exceeds its combined sales for 1997 and 1998.
– For every $1 BRCM took in for Q2, it lost 50¢, and for every $1 BRCM took in for Q1, it lost 86¢. Last year, for every $1 BRCM took in from Q1 to Q4, it lost $2.85.
– BRCM has a NEGATIVE 75.6 ROA and NEAGATIVE 85.4 Return on Invested Capital for 2001.
– 63.7% of BRCM assets are nothing more than goodwill. If goodwill is subtracted, BRCM book value per share declines from $12.41 per share to 3.27 per share. BRCM is utilizing the more "subjective" accounting for goodwill by adopting FAS No. 142
– BRCM liabilities increased by nearly $100,000,0000 during the first 6 months of this year alone. Had BRCM paid its bills similar to 12/31/2001 levels, cash would have declined by $104,691,000.
– On February 7, 2001, BRCM CEO Dr. Henry T. Nicholas told investors and analysts at a BofA conference, "We are experiencing very favorable growth, and very favorable growth in operating profits." On January 23, 2002, after BRCM reported a more than $2.7 BILLION loss for FY 2001 – it’s largest ever loss – Nichols proclaimed, "Once again Broadcom delivered strong quarterly results."
– In an "Enronesque" fashion, BRCM has thus far this year conveniently excluded more than a QUARTER BILLION DOLLARS in expenses to narrow a nearly $300 million loss into a more palatable $38.7 million loss. BRCM excluded $2,656,234,000 in expenses in 2001 – greater than ALL its revenues from 1997 to 2001 – narrowing a more than $2.7 BILLION loss to just a little over an $85 MILLION loss. In 2000, this "pro-forma" chicanery magically converted a nearly $588 million LOSS into a more than a $242 million PROFIT.
– No fewer than 28 law firms are now pursuing class action claims and other litigation against BRCM fraud and accounting abuses.
– BRCM best ever earnings were only $0.36 per share, back in 1999. Cumulatively, however, the company has had absolutely no earnings since 1997, as it has lost an aggregate of $3,733,418,000 during this period – more than twice the GDP of the United States Virgin Islands. Still, "investors" as of the close Friday have placed a more than $5.4 BILLION price tag on this company, paying over 55 times its 1999 earnings – earnings likely never to be seen again.
– Over the past 5 years, insiders unloaded nearly $2 BILLION in BRCM stock. In the first 5 months of this year alone, insiders dumped 870,000 more shares.
– Contempt for shareholders is epitomized in the BRCM corporate charter by way of the creation of Class B shares (majority owned by insiders) with superior 10 to 1 voting rights over Class A shares.
– In January 2000, BRCM directors increased the authorized shares of Class A stock from 400,000,000 to 800,000,000 shares, and the Class B stock from 200,000,000 to 400,000,000 shares. Even if all the Class A shares were issued, BRCM directors can control the company with as little as 40,000,001 Class B shares, shares which can be freely issued at present without any shareholder approval whatsoever.
– Even though BRCM presently trades at a 92.8% "discount" from its all time high of $273.63, not even one insider has been willing to purchase even a single share of BRCM (other than the exercise of options – at shareholder expense).
Jack |
