Sure, INTC is covered. If BRCM dominates, they can continue to buy into them, or buy them out later. Buying BRCM now is going to be looked on as a cheap, smart thing to do in five years. If BRCM loses to this INTC-backed company, then INTC wins. A win-win is a good thing, but there are other competitors. BRCM has seized this industry, providing over 90% of the chips for the growing cable modem industry. They do provide broadband technology, not just chips. Cisco has shares, too, and they can use BRCM's technology at the router sites. Things look good for BRCM. We are in a technical correction(overcorrection), and once Greenspan gets his testimony over with this week, we should see the bulls return. The rising yield on the long bond has further subdued the market already in fear that Greenspan would raise rates. I think the idea of raising rates is stupid. It won't happen.
Miller |
