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

To: Rishi Gupta who wrote (37726)	12/9/1998 3:39:00 PM
From: Steve Reinhardt	Read Replies (1) \| Respond to of 50808

Rishi, The company that I am watching is Broadcom, today jumped $17 to $117. I think C-Cube by adding MAC to its video chip, wants to address the cable set-top box market. If it indeed does it, CUBE will be a good investment. However, look at this post from Yahoo. Steve BRCM becoming too expensive for sales to keep up by: TonyVar60 (38/M/Chicago) 1315 of 1316 with current valuation. Broadcom is a great company with a great product but the supposed digital/cable/internet set-top market will only reach 25% of households by 2002. Expectations for over 50% penetration by 2010. Broadcom will not be able to grow sales at the same rate its stock is exploding to keep some kind of meaningful valuation. Anyone who buys at these levels is playing with sure fire if BRCM comes in at or even few pennies above analysts expectation. After all, this is a semiconductor company and it's been given internet type valuation. The run-up in the last few days are based on short covering since the short term (2-4 weeks) looks very promising with the strength in the semiconductor industry but look for huge downturn in the first quarter of 1999 as the likes of BRCM fall back to earth. Be careful and prudent with your investing. Tony