Since it's been in the pipeline since 2/5, probably mid to late March. If you're not a MS/DW, H&Q, AB, or DMG key client,you'll be paying the pop (which will probably be big). This will probably be heavily oversubscribed, so if you're looking at this as an investment vehicle, rather than a swing trade vehicle, it's probably worth waiting til the stock shows some trading history and price stability. No doubt Broadcom has a soild grasp on the technology, some solid partnerships, solid equity investors, and current leads in product deployments, especially US cable. But, don't expect this to last long. Their current high gross margins will not hold in products where every other piece inside the box is sold at a razor-thin margins, and at a ridiculously low total product cost considering the complexity of the technology inside. Their time to market advantage will be irrelevant because deployment of systems lags the pieces. Once systems are deployed en-masse, many other players will have come out with functionally-equivalent pieces (e.g. Phasecom, Libit, Stanford Telecom, Rockwell, probably many more). All it takes is one of these other players to undercut their price, and virtually everyone will buy from that alternate source because "why pay 2x for the same thing." This will force all players to drop prices or kill the product if they can't survive on those margins. They have many products in many areas, so that helps matters some, but I just thought I'd give you some food for thought. Also, read the S-1 (dry but informative).
dh |
