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

To: jim cannon who wrote (746)	1/30/1999 11:45:00 PM
From: neverenough	Read Replies (1) \| Respond to of 6531

I played BRCM at 120 last week right on the 50 EMA, sold it at 150. If it doesn't hold 129 it's going right back to the 50 EMA, where I have my limit order in, this time it's for twice as many shares... clearstation.com

To: jim cannon who wrote (746)	1/31/1999 10:58:00 AM
From: John Biddle	Respond to of 6531

I am just beginning to look at BRCM and would appreciate some opinions from those more knowledgeable about this company. I agree it has a great story, what with every high speed internet connection type appearing about to explode and every one of them a strong BRCM market. However, the following numbers from the SI profile page and the Broadcom web site give me pause. 3/31/98 6/30/98 9/30/98 12/31/98 Revenue 35.3 45.2 52.5 70.1 Net Inc. 7.7 7.7 8.2 12.8 Net Profit Margin 21.7 17.1 15.6 18.3 Shares Outstanding 41.3 47.9 48.4 50.1 These numbers look much worse from a per share perspective, which is the more important way to look at it since shares are what you own. 3/31/98 6/30/98 9/30/98 12/31/98 Revenue/Share $0.85 $0.94 $1.08 $1.40 Net Inc./Share $0.19 $0.16 $0.17 $0.26 While I'll grant that the company's revenue is growing at a tremendous rate, how long can they keep it up? Look at the trend of shares outstanding. Your ownership in the company has been diluted 18.6% in 9 months. Will this slow down? Profit margin is back up this quarter, a very good thing. However, with a revenue jump like that I'd have expected a better improvement. I'm not long or short this stock and my potential interest is to buy. Please keep responses to relevant facts and/or reasoned opinion. Thanks.