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

To: Patriarch who wrote (329)	7/28/1998 3:56:00 PM
From: david jung	Read Replies (2) \| Respond to of 6531

The Real Winner in the AT&T Deal The market sure didn't like the news out of Broadcom (BRCM) on July 21. The company and its lead underwriter, Morgan Stanley, announced that restrictions on the sale of 850,000 class B shares would be partially lifted. That puts shares equal to approximately 20% of the company's 4 million-share initial public offering on the market way ahead of the October schedule that many analysts had expected. (That means there's potentially 20% more Broadcom stock on the market than just a few days ago. More supply generally means falling prices until the market absorbs the new shares.) Add a general exhaustion in the stock market after a quick technology rally, and the result took Broadcom from $76 on July 16 to $63 7/8 on July 24. Nothing in the long-term fundamental story has changed -- revenue climbed 737% in the current quarter and earnings per share beat analyst estimates by 3 cents. I continue to recommend the stock. This may be a good time to add to positions investor.msn.com David WallStreet Links: 100+ Investment Links members.tripod.com Long Distance Search Engine: ldsource.net