Mar 30, 2007 (08:03 PM EDT)
Credit Suisse Disruptive Technology Portfolio Mover Of The Week: Broadcom
Read the Original Article at InformationWeek
Chipmaker Broadcom posted one of the biggest stock-price declines last week of all the Disruptive Technology Portfolio companies. The company's 6.4% slide happened despite news that Broadcom and Qualcomm were dismissing patent and trade-secret misappropriation claims against each other in lawsuits pending in San Diego. This is clearly positive for Broadcom, even if it only modestly reduces legal spending.
Investors continue to be wary of Broadcom's exposure to Motorola, which recently said that its March quarter sales won't meet expectations. As a major supplier of Bluetooth chips for Motorola's Razr phones, Broadcom could feel effects from that company's weakness. In addition, sales of Gigabit Ethernet chips have been slow recently, providing further reason for caution about Broadcom.
Overall, the DTP declined 0.8% in the week; the S&P 500 grew 3.2%. Twenty-three stocks ended the week in negative territory; only six were up.
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