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

To: sam who wrote (848)	2/12/1999 8:53:00 AM
From: John Biddle	Read Replies (1) \| Respond to of 6531

Thread: I posted this (749) almost two weeks ago and didn't get any reponse. Maybe I should have indicated that it wasn't directed to one particular poster but to the thread. How about a little discussion here? ============== 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.

To: sam who wrote (848)	2/12/1999 4:34:00 PM
From: Raymond Duray	Respond to of 6531

Thanks Sam, I guess my point is that wisdom needs to be brought to bear on the development of and applications for new technologies. Your comment on the migration of TV from direct broadcast to cable is quite a good argument for not saying that we have fully evolved any technology. I am remind of the eminent Professor of Science at Harvard who said, in 1898, that the Patent Office should be closed because everything of importance had already been discovered. Who could have imagined that in 30 years cable could be the primary carrier for a internetwork into the home? Possibly John Malone, Vint Cerf, or Jon Postel. Certainly not me. I was imagining it would be nice if the Viet Nam War was over. Regards, Ray