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Author: tangoev Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 6162  
Subject: Buying Op? Date: 10/25/2007 1:28 PM
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Stock has fallen close to 20% since announcing results earlier this week.

Reuters take - NEW YORK, Oct 24 (Reuters) - Shares of chip maker Broadcom Corp (BRCM.O: Quote, Profile, Research) fell more than 16 percent on Wednesday after the company said earnings would continue to be weighed down as it continues to spend heavily on research and development. Broadcom stock fell $7 to $35.06 on Nasdaq after the company said its gross profit margin would see an even greater fall in the current quarter than in the third quarter, for which it reported results late on Tuesday.

After listening to the conference call it seems to me that yes they are spending a bunch on R&D and this has spooked the market. Yet this is the key to success. They have to develop new stuff, like the single chip cell phone. This is cool but expensive that is an investment in the future. I see this as an opportunity to buy more.

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