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

To: SliderOnTheBlack who wrote (410)	10/3/1998 6:02:00 PM
From: Patriarch	Read Replies (2) \| Respond to of 6531

Hey Slider, As per BRCM's press release on the SFA shares: …effective October 2, 1998 Morgan Stanley Dean Witter, the lead underwriter for Broadcom's initial public offering, will release the underwriters' lock-up restrictions currently imposed on 600,000 shares of Broadcom Class B Common Stock held by Scientific-Atlanta, Inc. Those shares will then be available for sale by Scientific-Atlanta. Concurrently with this release of 600,000 shares of Broadcom Class B Common Stock from lock-up restrictions, Broadcom and Morgan Stanley Dean Witter have agreed to include up to 340,000 additional shares (plus an underwriters' over-allotment option of up to 60,000 shares) of Broadcom Class B Common Stock owned by Scientific-Atlanta in Broadcom's proposed follow-on Common Stock offering, also announced today. Scientific-Atlanta has agreed to a new lock-up for its remaining 500,000 shares of Broadcom Class B Common Stock for a period of 180 days from the earlier of (1) the date of the final prospectus for the proposed offering or (2) October 14, 1998. Common B shares become Common A shares once they are sold to the public. So I guess these shares could go now. You would think they would wait until earnings are announced, tentatively scheduled for Oct 12, to start selling. Speaking of Oct 12, I got this date by taking April 17, the first day of trading, and counting off 180 days. Thank God I went to college <g>. In terms of the volatility, I think this is something we need to get used to for the time being. This is said for BRCM as well as the overall market. In this market, any stock with a high multiple, especially a small-cap, is going to get scrutinized. In regards to the $48-51 price range, you probably right. BRCM is getting dangerously close to its 200 DMA ($62.82). I'm not a TA person but I know this is a bad thing. Although, by year's end, I think we'll see a nice push to the high-70's. BTW, both CSCO and LU look attractive at this point. Another situation of excellent long-term growth being sold. Talk about SFA, NT takes a dive and the company that stealing its share, LU, takes a beating too, HUH? Regards, Pat