Call 1-800-ADVISER for Independent Financial Advice
America's Fastest Growing Network of 100% Independent and 100% Objective Financial Advisers

Picture of The-Adviser The-Adviser.com The Place to Come for Answers™

Broadcom - Turbulence Ahead?
Independent Buy-Side Research By The-Adviser.com -   

Money Management
Portfolio Reviews
401(k) Rollovers

Financial Plans
Estate Plans
College Savings
Ask The-Adviser
Clients Only

Available Services
"Interview Us"
Fee Information

The Press

Home Page
Related Links

Stock Quotes

Analyst is MD Porcelain - Update New York 10/08/00As previously discussed, the company has closed on its acquisition of Silicon Spice,  a leading developer of gateway and carrier access chipsets, software and development tools for high-density voice, fax and data packet transport over wide area networks (WANs). The acquisition continues Broadcom's growth strategies and move into additional technology markets.

The stock market correction continues to negatively impact technology valuations and with no surprise, this downward trend has resulted in a slight decline in the price of Broadcom's stock. Broadcom is currently priced at $227down from its high of $274.

Based on the markets turbulence, we believe that Broadcom is susceptible to additional profit taking activities and have lowered our short-term outlook to AVOID. We believe that current market activities will result in a slowdown in growth acquisitions or an increase in shares offered to potential sellers. Broadcom has previously shown a remarkable ability in retaining key employees from acquisitions. In fact, not one CEO from any of its acquisitions has left. Broadcom retains employees by offering them options and other stay-on bonuses. Market conditions will require higher dilutive retaining activities. 

Our long-term outlook on the stock  remains positive.  Broadcom is a leading technology company and view any short-term weakness as a long-term buying opportunity. We reiterate our long-term rating of BUY. The stock remains an aggressive technology play for long-term investors who can hold the security for three to five years. Our earnings estimates are listed below:

Q1A Q2A Q3E Q4E Year
2000 Pro-Forma
$.18 $.23 $.25 $.25 $.92

Do you want to stay up-to-date on Broadcom and the semiconductor industry? Get The-Adviser.com Alert™ for FREE. Enter your email address & click the button:

About Us
The Independent Adviser Corporation is a 100% Independent and 100% Objective Financial Advisory Firm that writes buy-side investment research. Our network of independent Fee-Only Financial Advisers serves individuals, families and businesses. They provide financial planning services, tax advice and offer professionally managed asset accounts. They do not underwrite corporate securities nor do they sell any proprietary products. To find out more or get a FREE consultation Ask The-Adviser.com or call 1-800-ADVISER.


Note: The Company does not earn fees for investment recommendations or referrals.   Our research reports are prepared for general circulation and are circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. The Independent Adviser Corporation, its affiliates, directors, officers, employees and employee benefit programs may have a long or short position in any securities of an issuer or in related investments. Please read our full disclosures by clicking here.

In Association with Amazon.com

Got an investment question?

Ask The-Adviser.com

Broadcom is on fire.

Open a professionally managed account:

  • Brokerage Accounts
  • Traditional IRAs
  • Roth IRAs
  • 401(k) IRA Rollovers
  • 403(b) IRA Rollovers
  • College Savings
  • Retirement Savings

Click here for our Top Ten Investment Picks

Financial Advisory Services
Money Management
Portfolio Reviews
401(k) Rollover Assistance
Retirement Planning

Financial Plans
Estate Plans
College Savings

In Association with Amazon.com

Why should you invest alone?

The Independent Adviser Corporation is a Registered Investment Adviser that specializes in helping individuals, families and businesses develop investment and financial planning strategies.
Click here to learn more about our Fee-Only services

Ask The-Adviser.com

Please visit our sponsors.
Click Here to Visit our Sponsor

America's Independent-Adviser.

Copyright.  The Independent Adviser Corporation.  All rights reserved. Important Legal Information