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Broadcom Corporation Message Board

  • hiihee1 hiihee1 Jul 8, 1999 2:25 PM Flag

    Yes re: cisco

    CSCO owns over 1% of BRCM. INTL has a lot of ownership in BRCM too.

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    • San Diego IS just down the road, and there are
      some complimentary products (though perhaps scattered
      in too many markets). But a $2.5 billion acquisition
      of a Cisco competitor? Or would we need to let
      AMCC's managers interfere with the Henrys' leadership
      (by way of merger)?

    • I think BRCM will make a move on AMCC soon....

    • The fact that those "different" shorters is
      actually the same person, or different people enlisted by
      the same is transparent. I suppose if I had shorted
      BRCM recently I'd resort to desperate measures

      Even if BRCM is overvalued, the fact that it continues
      to go up consistantly makes that argument somewhat
      irrelevent. It just means you should watch it more closely.
      Keep in mind BRCM isn't some hyped up internet IPO.

    • Ask Micheal Dell if 25% is sustainable and he'll
      laugh in your face. Of course BRCM isn't Dell, but I
      think the point is made just the same.


      I know Dell's stock hasn't done well as of late,
      but look at the performance since IPO. Broadband will
      become a necessity just like Pentium computers. I
      remember when I had a 486 running at a blazing 60MHZ. If I
      still had it, it would take me a week just to log on!

    • I, too, think it is inappropriate to attack
      someone who simply comes forward and expresses an opinion
      about BRCM that includes it being too highly priced, or
      prime for short selling. Admit it, it is. But a year
      from now, we may not think so. With a run-up this
      fast, it needs to have profit-taking unless we see
      blockbuster news [which isn't expected this

      The people we need to insult and drive off the board
      are those who hog the bandwidth with rants,
      repetition and bragging anonymously about their stock
      picking prowess - with bogus links and half truths.

    • Try the same analysis with MSFT, and it doesn't
      look great, but I own it and will continue to make
      money with it.

      What BRCM also offers is
      explosive growth in revenues, gross profit and cash flow.
      Net income is up 2 1/2 times last year. It has cash
      exceeding all liabilities. Revenue was up 5 1/2 times from
      97 to 98, and the market it dominates is having
      explosive grown, increasing exponentially. While that
      happens, its earnings could grow much faster than 100% per
      year - just remember, acquisitions and related
      expenses that give the company long range growth may
      dilute earnings somewhat, but the company has the cash
      flow to sustain it.

      It IS overpriced. Will it
      ever be substantially cheaper? I don't know. But, it
      will be much more expensive as its sales and
      profitability grow.

    • You remark that DELL hit the skids when the
      fundamentals changed.

      Have you looked at the price
      today? Back to about the Jan 1st price and rising. I
      tried to increase my position at 33 a couple of weeks
      ago when it took its big dump, but missed it. Kept
      thinking it would wallow around in the mid-30's longer,
      with an occasional big dip before it moved back

      It's hard to bet against the 900 lb. gorilla in any
      growth industry: MSFT, INTC, CSCO, or BRCM that have a
      jump on the competition, and know how to adapt. Good
      products and good management will usually weather a bad
      quarter or two, while they adjust to competition or
      changing times. That's why they are more stable. Sometimes
      you have a company like CPQ that starts trying to
      change direction, making mistakes. It takes a lot longer
      for them to adapt.

      I intend to stick with
      BRCM long term for those reasons. I just feel a lot
      more comfortable when there are small incremental
      increases in price, but that is the consequence of
      volatility. This stock needs to rest for a while, until the
      fundamentals change - then get ready for the next surge. I
      can't time stock prices with any precision - never met
      anyone who could

    • Congrats on your resolve to hold onto this baby
      for so long. Sure, its been on fire since last
      October, but it was tough sledding last summer (as you
      know). I guess you're right about the personal attack
      thing, but sometimes I just lose my temper with these
      jerks. Anyway, I take great pleasure in knowing that
      they will get theirs soon. Good luck.
      GO BRCM!

    • Good analogy, rro. Both are blockbusters. CSCO
      has proven it time and again and has evolved into the
      classic, have-to-own-it growth stock. BRCM shows every
      sign of heading in the same direction -- huge market
      potential, market leadership, leading proprietary
      technology, great acquisitions (e.g., Epigram), great work
      ethic, and awesome management.

    • This stock has been "overvalued" for years but
      always outperformed. Any thoughts from your quantitative
      analysis on this stock?

      After all, BRCM is also
      expected to reach $1b in revenue faster than any
      semiconductor company in history.

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