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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: FR1 who wrote (795)	1/7/2001 5:37:33 PM
From: Jenna	Read Replies (2) \| Respond to of 6445

BRCM that move on Wednesday was a 'mob' overreaction to a general good news and now that volatility has gotten back to average volatilty and rationality is prevailing again, BRCM should be back to the 70's pretty quickly and down from there. With a growth rate or 40% its worth about 45 bucks. I have no short/put position in BRCM any longer but I have puts in others that seem precariously balanced on top of a house of cards. If AMAT is undervalued what does that make BRCM? BRCM Trades at a Premium PE Multiple of 95.6 times, vs. the 21.6 times earnings average multiple at which the Semiconductors SubIndustry is valued. Cash Flow up 90% Earned $0.23 second quarter of 2000 $0.23 AMAT Trades at a 17% Discount PE Multiple of 17.9 times earnings, vs. the 21.6 times average multiple at which the Semiconductors SubIndustry is priced. Cash Flow for the year was up 170% Earnings $0.70 for the second quarter of 2000