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Good afternoon, my fellow Fools...

I'd like to get some opinions on Broadcom Corp as
a potential RM company, so pull up a stump and share
a thought or two...

Broadcom, as many of you know, makes semiconductors
for cable set-top boxes, cable modems, high-speed
networking devices, and DSL equipment. As I see it,
they are uniquely positioned to take advantage of the
upcoming "broadband revolution"... the number of
users currently with a cable modem or DSL is still
low, but expected to rise sharply (Broadcom is hoping

I ran BRCM through the RM Ranker spreadsheet, and got
some interesting results. Although their sales are not
over $1 billion (it's more like $203 million), they
hit the other points pretty well...

Gross Margins:

Net Margins:


Fool Flow ratio:
3.49 (uh-oh)

Obviously, the Flowie raised a red flag... the reason
behind this high ratio is that accounts receivable
increased 272% (year-over-year) and inventory increased
170% over the same period. This doesn't look so bad
though when you consider that sales grew an astonishing

Any thoughts on BRCM being (or becoming) a RM stock?
This could potentially be a huge market (which BRCM
is already thrashing) and they are already posting some
strong numbers... what do you think?

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