Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: 11x Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 6162  
Subject: Re: BRCM is going to go big Date: 5/19/2007 3:50 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
masayako,

I have been trying to figure out what to do with my cash position I've had for a while, and selling stocks I am no longer interested in. I have been trying to find a semiconductor company. I have looked at ATHR, SMDI, and SIGM. ATHR flat out says they "want to be like Broadcom" but do not have the critical mass and infrastructure to compete with BRCM on pricing and therefore must take lower margins, which means less R&D money. ATHR is a play on the wireless chip industry including the 11n standard, which ATHR was a leading proponent of setting the standards, they then have to turn around and compete with BRCM! SMDI meanwhile is in the emerging industry of WiFi which also has a lot of promis. They too face competition from BRCM! SIGM is in the promising field of IPTV, where telecom companies are trying to get in on the triple play and offer phone, internet, and TV, much like cable is trying to do, and cut in on each other's turf. So the solution for telecom is to enter the television market via IPTV, where SIGM has a large market share. This could be huge for SIGM... They also face stiff competition from Broadcom. And for IPTV, the customers are going to be big, but fewer in number, so it's important to be able to offer volume pricing at low costs. This is where BRCM is at an advantage over it's peers. It can simply price them out of the game and continue it's dominance. I'm starting to wonder if I want to try investing in SMDI and SIGM, or go with the big company, BRCM, which seems to have a solution to many of these new technologies. ATHR meanwhile wants to be the next BRCM, you are simply buying on the hopes it can acheive critical mass and compete on price without sacrificing margins.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement