Broadcom (BRCM) Message Board

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Technology Stocks : Broadcom (BRCM)

BRCM 54.67

0.0%

Feb 9 4:00 PM EST

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To: Stoctrash who wrote (1229)	4/9/1999 10:45:00 AM
From: Doughboy	Read Replies (2) of 6531

FredE, you don't understand BRCM's strategy: they do not have "fat margins" as you state because they are actually trying to build market share while they still have the field mostly to themselves. Their net margin is around 15% which does not provide low-hanging fruit for new entrants to pick off. This is the right move; it discourages entry and locks in customer relationships. IMO, the question is not whether BRCM will be the single dominant communications chipmaker 5 years from now; it obviously won't. The right investment question is whether it will be one of the handful of survivors. And on that question, I have no doubt that Broadcom will be there. Doughboy.

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