Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Stoctrash who wrote (5661)	3/7/2001 4:56:24 PM
From: Maya	Read Replies (1) \| Respond to of 6531

Goldman has them earning .45 this year. Figure out the growth rate. dailynews.yahoo.com Interesting points to note: But 3Com told Broadcom on Feb. 28 that it was ending its agreement regarding the warrants, the company said. On Tuesday, Broadcom said it was advised by its auditors that the prior accounting method may no longer be appropriate, given that the warrants may not exercised. Broadcom said it is reviewing the procedure with its auditors and the Securities and Exchange Commission (news - web sites).

To: Stoctrash who wrote (5661)	3/7/2001 5:39:21 PM
From: Bernard Levy	Read Replies (2) \| Respond to of 6531

I usually use price to sales to figure out the ``fair'' price for semi companies. For a good (i.e. growing and well managed-- BRCM fails the second test) company a P/S of 5 is reasonable. For BRCM this gives $25. As a side comment, the core group of engineers that started BRCM is very impressive. They failed by trying to ``blitz'' themselves into the next INTC overnight instead of following a more deliberate approach. They might have gotten there in about 10-15 years, but Nicholas was in a hurry. The hypergrowth he tried to achieve means also that the high quality of the original engineering talent has been diluted.