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

To: Lizzie Tudor who wrote (6290)	8/13/2002 10:29:43 PM
From: uu	Read Replies (1) \| Respond to of 6531

Lizzie: > I have been informed by countless bears (who call themselves traders these days) that SLAB is going to the single digits. Well I've been waiting since naz 1700, and no go. I'm new to brcm but I'm wondering if this one is the same story I dont know about SLAB, but I know a bit about BRCM. Like I said it takes a lot for me to short any stock, but BRCM's story is written all over. And yes, similar to March of 2000 when we had a lot of clueless longs (sometimes even I admit being one of them), we seem to have more share of our clueless bears these days! :) Anyway, do your own research on BRCM but this is what I have found out (yet once again provide the link for your review). Good Luck, Message 17844634 Message 17857341 A lot of people associate BRCM with Cisco (which counts about 11% of BRCM's total sales). They never ask the following: 1) Why (and how) Cisco has managed to increase its gross margins from 57.7% to 67% while keeping its sales flat, and intends to further increase its gross margine during the next couple of quarters with sales still being flat? And how come BRCM has been losing its gross margins at the same time CSCO has been increasing its own?!! 2) With so much stock options at stake (BRCM is on the top of the list of companies with the highest number of outstanding options), doesnt anyone care if at some time in the future these options are treated as expenses (and they will) BRCM's expenses will increase by 1500% from 1998 onward?! 3) And lastly, just because Mercedez SL 500 is a great car it does not mean its price has got to be $1 million! BRCM's products are great, but the company that produces such great products seems to have a valuation as if it produces machines that can convert crap into gold!