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

To: Jo Coleman who wrote (1408)	4/26/1999 4:03:00 PM
From: Black-Scholes	Respond to of 6531

That is the figure Tulvio quoted in the post I responded to. I have no idea of its accuracy (he might be quoting projected PE vs. trailing PE). If it's actually higher, it just reinforces my argument.

To: Jo Coleman who wrote (1408)	4/26/1999 5:04:00 PM
From: synchro	Respond to of 6531

Some quote PE in terms of trailing earnings; some quote PE in terms of forecasted earnings. The three-digit PE is probably trailing earnings. The two-digit PE is probably forecast earnings. With the stock starting from a small base, its earnings going forward can be anything from negative to blowout huge. So no matter how rosy the company's prospects are, buying in is always, uh, based somewhat on a wing and a prayer. But it might just be a prayer answered.

To: Jo Coleman who wrote (1408)	4/26/1999 5:58:00 PM
From: Doughboy	Read Replies (2) \| Respond to of 6531

The 151 P/E is the correct number for the trailing 12 months (ttm). Broadcom earned .50, and at a price of around 75, that's a P/E of 150. Broadcom's forward P/E, based on 99 estimates of .59 is 127, and '00 estimates of .79 is 95. But those numbers don't tell the whole story. As I tried to explain earlier (here: siliconinvestor.com the earnings for '99 and '00 are very conservative. Broadcom has blasted earnings estimates by 31% on average the last 4 quarters (even after those estimates were raised repeatedly). Broadcom is certainly on-track for '99 earnings of about .75, so the P/E is a much more reasonable P/E of 100. Is it a "value" stock? No way. But if I'm a long-term investor, Broadcom is as good a bet as any.