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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST
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To: rtroup who wrote (1503)5/5/1999 11:35:00 AM
From: gpowell   of 6531
 
Here's what I see in that article:

Broadcom generated $203 million revenue in 1998 , up from $37 million in 1997. Net income reached $36 million. First quarter 1999 results again look positive with revenue of $96 million and earnings of $19 million.

With the growth in cable modem deployments, set-top boxes with Internet, and DSL I forecast BRCM could post more than $450 million in revenue for 1999.

If the net income margin remains that implies $85 million after tax income (before any charges).

As Intel moves around Broadcom in the silicon space I think it brings up more challenges for Broadcom to get more aggressive in the field to begin to assemble a suite of broadband solutions in the box and in the network.

Projecting out 7 months or so:

Those numbers support a forward looking P/E of 121 which translates to a share price of $114. The question out on the street is is there enough reward to warrant the risk of an initial investment in this stock.
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