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: Taro who wrote (6386)	10/9/2002 1:14:03 AM
From: uu	Read Replies (1) \| Respond to of 6531

Taro, I do not know much about MRVL, but based on market caps your assertion is correct. It seems MRVL at $1.8 billion market cap (i.e. stock trading at around $15/shr) is trading 25% below that of BRCM (awhich currently is at $2.6 billion with stock trading under $10/shr). BRCM deserves a market cap of no more than $1.2-$1.3 billion given their prospects for reveneue for the rest of this year through Q2 2003. This means the stock will need to come down to around $4.5-$5/shr for it to be even considered a fair play). Assuming MRVL has the same chance as BRCM in generating revenue then their market cap needs to be at around $1.2-$1.3 billion (or a stock price of about $10-$11/shr. However since they have always been considered the underdog and having a market cap that has traditionally been 30% to 40% less than BRCM, then their stock price will probably come down to around $7-$8/shr. But why bother investing in these highly speculative immature companies with even more immature and arrogant management, when you have companies such as LSI, XLNX, or SLR with proven mature management and tons of cash selling at such low valuations (which are going to get even cheaper during the next 3-4 weeks)?