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Technology Stocks : Broadcom (BRCM) -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (5521)	2/27/2001 11:24:55 AM
From: Logain Ablar	Respond to of 6531

Hi Fred: Yes visibility is now clearer to $35 (remember I thought $55 would hold). The move to $55 area now opens it up. Also note with todays WSJ article its only a matter of time before the company is investigated by the SEC. It could take a couple of months before we hear about it though. In reading the article the CFO defended the practice as agressive marketing. While I agree with the CFO the agressive marketing is OK that doesn't mean agressive accounting is OK. If you look @ the QLGC acquisition of ANCR you'll notice QLGC does lower their sales # each quarter related to the SUNW warrants acquired to use the ANCR switch. I'm not saying BRCM won't be allowed to use this practice (after a few months of investigation by the SEC of course & the auditors are now sweating it out since they are open to the subsequent lawsuits too if this practice is in violation of FASB standards) but the odds don't seem to favor it. Good luck. Tim

To: Stoctrash who wrote (5521)	2/27/2001 1:50:45 PM
From: Raymond Duray	Respond to of 6531

OT OT OT Fred, Re: BRCM at 35 by next month - as I reviewed the financials for BRCM and how they've deteriorated since early 1999, I'd call your view optimistic on the fundamentals. But probably realistic in view of the sympathies of the pollyannas among the "investing" public. There is an interesting article in the current Red Herring, No. 93, March 8, 2001. Page 142 entitled "Choke Hold". The premise is that insiders have been using yet another deceptive trick to hide their bearishness, "(i)n response (to the need to hide Rule 144 sales), and with typical ingenuity, investmet bandks started offering the more clandestine collar method to corporate insiders whe wanted to climb out of their stock positions but didn't want to draw attention to their financial moves". This article is too fresh to be up on the RH website yet. Cheers, Ray :)