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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST

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To: SliderOnTheBlack who wrote (394)9/30/1998 6:47:00 PM
From: joe smith  Read Replies (2) of 6531
 
slider,

always enjoyed your enthusiasim over on the drilling thread. was a very tough place to be for a long time. getting a bit better, but a long ways to go. as for brcm, im curious as to how you can see a valuation of 120 or greater over the next twelve months. revenues are rising nicely, but earnings arent following due to margin pressures. just out tonight was a pre announce of this qtr. rev at 52-52.5m and eps 16-17cents. the earnings groth is not there.

how long can brcm maintain a multiple of over 100 times earnnings without significant groth? i think you will get your 60 target on the next decent market pullback before the end of october. wouldnt be surprised to see it in the fourties again. as for longer term(six months) and two more qtrs results i feel this could be down to the low thirties.

js
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