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

To: Charger who wrote (4)	4/7/1998 11:43:00 AM
From: Clam Clam	Read Replies (2) \| Respond to of 6531

You cannot predict what is inherently an imbalanced IPO process. This is a breakthrough component technology company. It is some kind of mix of Galileo (ramping unit sales) and @Home (cable modem buzz). This is as hot an IPO as you are going to find but Morgan Stanley is not the worst at pricing deals so they probably open it in the high 20's or low 30's. If VRSN is today trading at a market cap of $800mm, BRCM is probably going north of $1.5 billion ($35++). VRSN is ahead of itself, IMO but BRCM is as well-positioned as you could hope.

To: Charger who wrote (4)	4/7/1998 11:04:00 PM
From: Superhawk	Read Replies (1) \| Respond to of 6531

Charger: I seem to be running into you all over SI (the pleasure's mine). Trading IPO's at the open is not for the faint of heart. I've played a few now and again when I felt good about the company's market niche, potential, etc. But the operative word is "played", because they're impossible to predict. I was lucky enough to get a few shares of VeriSign and Steelcase from my Dean Witter broker prior to the open, sold them shortly thereafter, and did quite well. I bought DoubleClickat 30 1/2 just after it started trading, and sold it a few weeks later at 31 1/2 when I got nervous because nearly half their revenues are from Alta Vista, and Alta Vista is rapidly losing market share. Last summer I missed Peritus at the open. It was priced at $16.00. I had a limit order in at $20.00, but it gapped up immediately past that to $24.00. Recently PTUS traded at $5.00 and change. The bottom line is buy in if you feel lucky, but only with your play money. On the other hand, if you plan to invest long term, perhaps you could wait for a correction after the initial froth. Take a look at the charts of some recent tech IPO's (VRSN, DCLK, VNWK, ITVU, GTSG, RLAXY, CTWO, MUSE, EXDS) and see if there's a pattern to the trading over the initial few hours, days, or weeks you'd feel comfortable trying to exploit.