Shame or No Shame - Read the attached Story
Hey buddy, take a look at the thread looks like 12 - 50 on the open, just the kind of deal sensible folks (or those who want a shirt on there backs are looking to get into). This market is BS, Jim shame on you!
Srvhap, Ray, All
I've been following the BRCM Story since late last year.
I mentioned it here back on March 3rd. Message 3583682
If you don't enjoy my humor, please skip to the story that follows.
Picture of BRCM IPO at the Open
www-pao.ksc.nasa.gov
This will be a Hot IPO, it has a lot of thrust behind it.
The Space Shuttle Main Engines are very
sophisticated power plants that burn both liquid
hydrogen and liquid oxygen. Each engine can
generate almost 400,000 pounds of thrust at
liftoff. The engines are removed every flight and
taken to a shop in the Vehicle Assembly
Building for inspection and replacement of any
necessary components.
The Space Shuttle's rocket engines are capable of
operating at amazing temperature extremes. The
liquid hydrogen fuel is stored at minus 423
degrees Fahrenheit. However, when burned with
liquid oxygen, the temperature in the combustion
chamber reaches 6,000 degrees, higher than the
boiling point (not the melting point) of iron. If the
main engines pumped water instead of liquid
oxygen and liquid hydrogen, an average
family-sized swimming pool could be drained in
25 seconds.
This is not just my perception see todays news.
For the rest of the following story do the following
Go to gaskinsco.com
Click on Broadcomm, then click on where it says "Click Here"
Then Click on "Interview: Gaskins/RedHerring"
Then Click "Broadcom
Then Click on "Wall Street to eat up Broadcom's IPO" under Latest News
BROADCOM'S IPO POSSIBLY HOTTEST OF 1998
By Peter D. Henig
April 16, 1998
We don't like to brag -- who are we kidding? We love
to brag.
A year ago, we told you that Broadcom was our top
choice for 1997's best overall private technology
company, and its IPO Thursday morning is going to
prove us right.
"One of the hottest pricings of the year"
By the time you're reading this, Broadcom will have
priced its 3.5 million-share IPO between 18 and 20,
already up from its initial pricing range of 10-12, and will
begin trading on the Nasdaq Thursday morning under the
symbol (BRCM).
We kid you not: analysts are calling this possibly the
biggest public offering of the year. "This deal has the
potential to be one of the hottest pricings of 1998," said
Ryan Jacob, an IPO guru and portfolio manager of The
Internet Fund. Mr. Jacob, who also acts as research
director for the IPO Value Monitor, is beyond
enthusiastic when he talks up Broadcom. "The market
opportunity is right there in front of them and it's
tremendous," he says. "They are already shipping
products to all of the major hardware companies and
they have a rock-solid agreement with General
Instruments that carries them forward four years."
Broadcom's sole-supplier agreement with General
Instruments guarantees that the set-top box maker will
buy 100 percent of its chips from Broadcom the first
year of the agreement, scaled down to 45 percent of its
chip purchases by the year 2001. Far from being
concerned that General Instruments will slowly fade as a
customer, Mr. Jacob notes that the largest maker of
digital set-top boxes will own 5 percent of the company
after the offering, with Intel also owning a healthy 4
percent stake and even Cisco taking a 1 percent share.
In Mr. Jacob's view, "having such major companies as
investors and such a major agreement with General
Instruments in their hands ... separates them from the
others by miles."
Real products, real revenues
Mr. Jacob could be right. This is not your typical
high-tech IPO that won't show profitability for years --
far from it. According to Mr. Jacob, profitability is "right
around the corner." Eileen Ohnell, analyst with the
Renaissance IPO Fund concurs that this is a meaty deal:
"People are starting to realize the potential that's out
there for using cable for things beyond just cable TV as
we know it."
Broadcom's semiconductors not only control the market
for cable modems and digital set-top boxes, but its chips
are also used in products for ethernet networking, digital
broadcast satellite, and digital subscriber line (DSL)
markets. "Because they have products with different
maturities," explains Ms. Ohnell, "they are positioned
very well in a number of different areas." As a result, Ms.
Ohnell also believes the company will be profitable "in
the not-too-distant future."
And because Broadcom's products have to do with
bandwidth and speed, savvy technology players and
large institutional investors have made it clear they want a
piece of the action. In fact, with an offering of just 3.5
million shares to the public, compared with a total
post-offering amount of 43.2 million shares, you'll be
lucky to get your hands on any of Broadcom's stock,
even after it's been flipped a few times. As Mr. Jacob
puts it, even he would have trouble buying any shares in
Broadcom, because "anything in this market that
facilitates high-speed communications is going to be very
desirable."
It's not "chip," it's "cable"
We'd be fools if we didn't at least consider the downside
risks associated with any IPO. In Broadcom's case,
everything makes us chip-per. In fact, if there is a
potential red flag, it's that in 1997, 62 percent of
Broadcom's revenues were generated by only five
customers, of which General Instruments and 3Com
were the top two with 32 percent and 15 percent
respectively. But even this risk factor should wane over
time.
**For FULL TEXT see Link Information Above**
If your Lucky you can aquire BRCM for what we were paid per share
for Amati.
Shame On Me ;^))
JW@KSC |
