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

To: Patriarch who wrote (576)	1/7/1999 11:03:00 PM
From: 007	Read Replies (1) \| Respond to of 6531

Broadcom Corp. Recommended Minimum Holding Period: 4 Years (Nasdaq: BRCM) Much of what I have to say about Broadcom, a producer of chips for broadband communications, is already summarized in my recommendation of Aware (basically, that high speed internet access will be huge). There are two major differences between Broadocom and Aware. First, while Aware specalizes in only DSL products, Broadcom has every base covered, including chips for cable modems, DSL modems, digital set-top boxes, high-speed networking, and sattellite communications products. Second, as well as developing technology, Broadocm actually produces the chips for their products. Since the broadband chip market is in its early stages, there will often be huge differences in the quality of chip technology between the market leaders and competitors. As people will be willing to pay more for the best as this industry comes of age, the profit margins for the market leaders will be huge. Take a guess who the market leader is for all the technologies I've mentioned. That's right, ALL OF THEM. Not bad for a company whose competition includes Intel, Cisco, Lucent, and 3Com, with none of these companies having gained ground recently. Remember all the hype about PC/TV convergence? That phenomenon won't even begin to occur for a few years, but when it does, their recent development of a chip used to view web pages on a TV, along with Broadcom's dominance in the digital set-top box market, may give a hint as to who may be one of the leaders when the trend takes off. CEO Henry Nicholas said that if Broadcom (market cap $4.8 Billion) doesn't become bigger than Intel (market cap $194.1 Billion), he would view it as "one of the most colossal screw-ups in history." While it would be nuts to guarantee Mr. Nicholas' prediction, it seems to me like he's doing a good job of stacking the odds in his company's favor. This was found at this site: members.tripod.com What would you guys think if the CEO's goal became half true? M. Solum