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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Andrew Danielson who wrote (23666)	8/11/1999 6:39:00 PM
From: ALTERN8	Read Replies (1) \| Respond to of 27307

Hey, Wasn't BRCM bought by Yahoo!? They don't make chips, they host internet fashion shows! You guys are confused. Just Kidding

To: Andrew Danielson who wrote (23666)	8/12/1999 12:14:00 AM
From: -	Read Replies (1) \| Respond to of 27307

Andrew, you make some decent points on the surface, and that's how they have successfully "positioned" themselves with Wall Street, but I would argue that Broadcom is still an integrated circuit company; that's a lot different from being an internet company. I say this because their products are all silicon devices -- e.g., Ethernet physical layer parts (including some innovative, popular high-density parts), and a nice product line of components for cable modems. Their is nothing on their website (www.broadcom.com) indicating they are making DSL components, although I'd be surprised if they weren't doing development. According to their website recently they are rolling out innovative gigabit ethernet transceivers including 1000Base-T, and through the acquisition of Epigram, HomePNA networking chips -- which is a risky gambit (witness, the chart of Tut Systems TUTS, the PNA leader). So the point was not that there is anything wrong with BRCM, just that they are really a CHIP company because all they sell is semiconductors. To make them into an internet play is a major stretch. It's not the growth rate that determines what sector the company belongs in, it's what products the company sells and what markets they participate in. Broadcom could surely benefit from the proliferation of the internet and resulting sale of cable modems (as could a lot of other chip companies), but that doesn't make them into an internet stock; although their CFO would probably love it if they could convince the street of that (they have apparently done so). The economics of semiconductor companies are vastly different than internet companies. Broadcom will have to play by the economic rules of being a semiconductor component company. Many in the financial community apparently don't understand that (they've probably been "spun"), but eventually this fact will catch up to the stock, because it will drive their earnings. What amuses me is, many on Wall Street don't understand what the basic business of the company is! If you don't believe me, go take a tour of their website, and look at their products. I'm not saying this as a negative, they are obviously a very good chip company, the products are innovative and popular. I frequently swing-trade their stock on the long side, it's a hot one. The point I was making is that someday Wall Street is going to wake up and realize, this is a semiconductor company, not an internet company (duh)! Regards, -Steve