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To: 16yearcycle who wrote (9795)	11/28/2001 11:46:48 PM
From: Bill Harmond	Respond to of 57684

N- Plus, I hear that Broadcom has developed a chip that communicates directly with God, with 68% gross margins. I think they announced it after the close tonight.

To: 16yearcycle who wrote (9795)	11/29/2001 12:12:17 AM
From: Bill Harmond	Respond to of 57684

lightreading.com

To: 16yearcycle who wrote (9795)	11/29/2001 9:56:38 AM
From: 16yearcycle	Respond to of 57684

First of all let me say that although I own enough brcd to buy a high end Mercedes, their results are now the perfect example of the valuation problem that exists. Montgomery is saying that a year from now, earnings should be ~100% higher, or .09 for that quarter. If I exaggerate those aggressive projections, and use .125 for the 4q one year from now, then brcd will be at .50 per year pace a year out. If the pe is 80 at that point, an obviously very high pe, off of a way too aggressive projection, it would be at 40/share. This is why I am suggesting that the market is indeed not only factoring in a very, very strong recovery, it is also saying that the bubble existed for a very short time, as it is back to using peg's of 2.0 off of one year ahead estimates. Forward peg's of 2.0 off of aggressive growth rate projections only existed from mid 99 to q1 00(although they did skyrocket to peg's of 3.0 near the end on many stocks). I am not saying the market is wrong to do this.