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

To: DownSouth who wrote (1095)	3/13/1999 12:56:00 PM
From: Raymond Duray	Read Replies (5) \| Respond to of 6531

Hi DownSouth, I checked all of the above, BRCM is a good company in an exciting sector. A few caveats apply though, let me amplify upon my previous post. My point was that the xDSL line will never amount to Gorilla level sales, because that's not where the future of broadband lies. Granted, its only one of five main product lines for the company. The news from Conexant regarding their DOCSIS product is a plus for the time being, inasmuch as it's still vaporware. Financials are very good, ROI and ROE are excellent, in fact. Ahem, on the downside, BRCM is too popular. If you were to review James O'Shaughnessy's "What Works on Wall Street", or if you happpend to see Jeremy Siegal on Lou Dobb's show yesterday (Friday) they each make the point that stocks that are trading in the stratoshpere as far as P/E ratios are concerned, rarely yield long term advantage to their owners. And P/E 164 is stratospherically, if not mesoshperically high. (We won't talk about the Inuts here) A P/SR of 29 is also in nosebleed territory. So, can you make money on this one. Sure. Will you be able to achieve what Thomas Phelps praised in his "100 to 1 in the Stock Market"? It would be novel in the history of the markets, though not impossible. I'm not sure what brings out the wisenheimer in me on this thread. Perhaps its because some of the posters are either starry-eyed about the technology, or hopelessly venal. If I've offended you, I apologize. I would also refer you to Message 7766197 and techstocks.com This reply was more satisfactory to me than your multiple choice exam. ;-)) Regards, Latitude 45 / OutWest