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

To: Trader Dave who wrote (432)	11/8/1998 3:13:00 AM
From: put2rich	Read Replies (2) \| Respond to of 6531

Trader Dave, The question is whether BRCM will hit 120 before going to 20? Why all founders unload most of their shares last 2 weeks at $69? Can BRCM be the next CIEN, IOM, Cascade Communication? Thanks

To: Trader Dave who wrote (432)	11/8/1998 12:23:00 PM
From: Patriarch	Respond to of 6531

Dave, thanks for your comments and you offer legitimate questions. Let me say first that in relation to any investing yardstick, BRCM is not cheap. It's multiple does give one pause. The other side of that coin is the tremendous growth BRCM is achieving. An example, BRCM booked revenue in the last quarter of $52.5MM. This compares to revenue of $37MM BRCM made last year alone. Credit for the above must be given to Henry Nicholas and Co. for executing their business plan. They are leading the markets they are in. Another example is the recent announcement of a DOCSIS compliant single-chip cable modem. Products like these are children of good R&D, something which BRCM spends a lot of time and money on. Due to this, companies are adopting BRCM's technology for their products. BTW, COMS is one of them: redherring.com I have said before on the thread that the one thing that helps BRCM is the adage of not having all their eggs in one basket. Being involved in just one high growth market like ethernet networking, xDSL's, DBS, cable set-top boxes, is reason enough for Wall Street to heap praise i.e. a high multiple. With involvement in all, IMO, gives some justification for where BRCM is today. So to climb off the soapbox and to answer your original question <g>, I personally view BRCM's “value” not in a traditional sense, but as looking at the entire universe BRCM operates in - the potential of a BRCM product being in every home with a cable box and the like. In regards to commoditization, Nicholas likes to make analogies to INTC in the manner of executing and leadership. Granted, INTC is the exception and not the norm, but with the above holding form, commoditization is something I don't see on the horizon for the time being. Personally, I invest by looking at long-term trends, invest accordingly, and holding for the long haul. Hopefully, the above does not sound too Gilderish and it's not intended as a pass on your questions, but it illustrates my faith in BRCM. All comments are welcome, Pat