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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST
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To: Doughboy who wrote (995)3/4/1999 7:41:00 PM
From: Bahama  Read Replies (2) of 6531
 
DougHboy, this is not to say that an open below 50 tomorrow wont be a screaming deal when you look a few years out, but:

You said: "If BRCM was a company sitting on top of fat margins..."

Their gross margins are greater than 50%. That's pretty fat for a commodity chip.

And you said: "and they are not a threat in cable modem chips--the real prize"

I'm not sure what you've read, and you're right relative to 3com, but the Intel/Libit partnership and Conexant are both working Cable modem silicon, as well as other competing broadband silicon. That's not to say either will take much market share or not...it's just to say they ARE a threat--much better capitalized threats. Both with their own fabs, and at least in the case of Intel, a much more advanced and efficient fab (than TSMC) for huge volume.

If you don't know much about Libit, I'd recommend learning about them. Its a very competent company with real product now. A definite threat, especially when combined with the Intel marketing might, and whatever additional Intel resources are a part of the partnership. It's never wise to ignore competitive threats just because you don't want them to be. The market certainly won't ignore them.
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