To: Trader Dave who wrote (127 ) 11/29/2000 10:23:48 AM From: SJS Respond to Here's some additional comments about BRCM and analyst coverage......Worth a read:As for the upgrade, there are competing factors to weigh as Edelstone was ranked the Number 1 analyst by Institutional Investor Magazine, ahead of No. 2 Dan Niles at Lehman. However, Morgan Stanley does a lot of investment banking deals for Broadcom. Regardless, Edelstone is an influential analyst on the Street and he or Niles would have the best chance to at least slow the freefall....On Monday, Salomon Smith Barney had cut its price target to $200 from $300 citing signs of flattening orders in Broadcom's supply chain, inventory concerns in the digital cable sector and overall valuation compression among communications chip companies. Nicholas will counter those sentiments today as he recently said the company's outlook remains bullish and fundamentals have not changed in the last few months. He also is expected to reiterate his confidence in the EPS forecasts. Specifically, he is expected to reject the idea that inventory corrections at networking and cable companies will hurt Broadcom's business....We have to give Edelstone credit that he has never had a Strong Buy or even a Buy on the stock and has had only an Outperform since March 1999 throughout the wild tech ride last year while other analysts have not been afraid to slap Strong Buys on even $300+ stocks. In fact, this is the first time ever he has rated BRCM as a Buy.
