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

To: Alex who wrote (27)	3/24/1998 12:38:00 PM
From: Francis Gaskins	Respond to of 78

Good Broadcom article by Steve Harmon... __________________________________________ Faster Bandwidth Chips: Broadcom Stock Offer May Zoom It's always the last mile that's the hardest. With the Internet, that represents the bottleneck of the existing telephone networks that max out at 56.6 kbps on a good day, and the limited cable Internet wires that only reach small pockets of the U.S. and globe at a few megs per second. Don't hold your breath, but here comes warp speed. Broadcom wants to be at the center of this fatter bandwidth "webtopia" that many believe may be just around the corner. It makes silicon chips for cable modems, set top boxes, and xDSL devices, anything that moves data at the ever voracious PCs at interactive TV speeds. The Irvine, CA-based firm wants to sell its story and 3.5 million shares of class A common on Wall Street at a target share price of $11. Our number crunching shows BRCM may be after a $660 million market capitalization, about 18x 1997 revenue with losses. We estimate going forward this may be 9x 1998 revenue or about 60x estimated arnings. On the plus side, fourth-quarter revenue reached $17.3 million and $2.47 net income, as high-speed demand starts to emerge. See table, "A Screaming IPO On Its Way?" at internetnews.com Broadcom's five primary product lines encompass: high-speed communications and MPEG video/audio devices for the cable television set-top box market; high-speed data transmission and media access control devices for the cable modem market; 10/100Base-T Ethernet transceivers and repeater controllers for the high-speed networking market; receivers and MPEG video/audio devices for the DBS (satellite) and terrestrial wireless markets; and broadband twisted pair transceivers for the xDSL market. Translation: Faster Internet speeds via silicon of various flavors through many mediums. Broadcom's customers include an array of set top and cable modem makers including General Instrument, and 3Com, and others including Cisco, Bay Networks, Motorola, and Scientific-Atlanta. 3Com alone accounted for more than half of Broadcom's revenue in 1997.

To: Alex who wrote (27)	3/24/1998 7:10:00 PM
From: ftth	Read Replies (1) \| Respond to of 78

Hi Alex, I think it's a "dartboard" call. There's no first-day pattern that's consistent enough to bet money on it. With no trading history, there is absolutely no information to base direction or magnitude on. There's simply no way to know what the general public is willing to pay for it. Trading strategies would depend on whether you're talking scalps or swing trades, and you're limited to only long stock initially. If you study the first month or so of trading for "hot IPO's," there are some tradeable strategies which emerge. It's best to discover these yourself so you have both an entry and exit strategy, and understand (and can recognize yourself) the "signs of trouble" that indicate your scenario isn't playing out. dh