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No. of Recommendations: 1
The article does show receivables and sales growth figures. However, they're sequential compairsons for the 4th quarter of FY99. For certain numbers, particularly balance sheet accounts, I like to look at a little bit bigger picture. If we look at FY99 over FY98 Sales grew 139% and receivables grew 116%. This doesn't seem out of whack. Also, when a company grows this fast, you may see some fluctuation from quarter to quarter in things like receivables.

The fundamentals at Broadcom look pretty good in general (Gross margin of 60%, net margin of 16%, little debt).

Unfortunately, Broadcom has a market cap of around $40 billion with sales around $500 million. That's a ratio of around 80. (Just for reference, Intel has a ratio of about 15.) Price is a secondary concern but, in my opinion, Broadcom's sales don't justify the market cap.
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