Broadcom

AVGO-Q

NASDAQ:AVGO

315.47
2.74 (0.88%)
Broadcom Inc. is a designer, developer and global supplier of products based on analog and digital semiconductor technologies within four primary markets: wired infrastructure, wireless communications, enterprise storage, and industrial & others.
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Analysis and Opinions about AVGO-Q

Signal
Opinion
Expert
HOLD
HOLD
March 20, 2020
A diversified semi-conductor business with exposure to hand set mobile phones and data centres. One of the few holdings in this space that offers a good dividend yield. He likes them as a long term hold and they should benefit from the roll out of 5G networks.
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Broadcom (AVGO-Q)
March 20, 2020
A diversified semi-conductor business with exposure to hand set mobile phones and data centres. One of the few holdings in this space that offers a good dividend yield. He likes them as a long term hold and they should benefit from the roll out of 5G networks.
TOP PICK
TOP PICK
February 11, 2020

They sell chips to cell phone-makers (Apply is a big customer) and infrastructure and data centres (cloud services rent these centres). Recently, they're selling infrastructure software after buying Symantec. That's a shift in strategy. They've grown cash flow in 5 years exponentially. Rumour is they'll sell their chip business to phone, which would make them a pure play on those data centres, which is a good strategy. Trades a good valuation, pays a 4% dividend and tons of free cash flow. (Analysts’ price target is $349.24)

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Broadcom (AVGO-Q)
February 11, 2020

They sell chips to cell phone-makers (Apply is a big customer) and infrastructure and data centres (cloud services rent these centres). Recently, they're selling infrastructure software after buying Symantec. That's a shift in strategy. They've grown cash flow in 5 years exponentially. Rumour is they'll sell their chip business to phone, which would make them a pure play on those data centres, which is a good strategy. Trades a good valuation, pays a 4% dividend and tons of free cash flow. (Analysts’ price target is $349.24)

COMMENT
COMMENT
October 16, 2019
He likes the semis space in general, but not currently. AVGO has a done a great job over the years in absorbing companies, but they've run out of semi companies to buy and it makes less sense for them to pick up software companies now. Mixed feelings.
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Broadcom (AVGO-Q)
October 16, 2019
He likes the semis space in general, but not currently. AVGO has a done a great job over the years in absorbing companies, but they've run out of semi companies to buy and it makes less sense for them to pick up software companies now. Mixed feelings.
BUY WEAKNESS
BUY WEAKNESS
October 1, 2019
He's been looking at this. They just did an 8% convertible preferred offering that's created stock volatility. $320-325 is his price target. But you could get it cheaper. However, look at Micron, which has been slammed 15% lately. Micron reduced guidance a little, but managers can handle cyclicality, and they have a good mix of products. $58 is his target.
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Broadcom (AVGO-Q)
October 1, 2019
He's been looking at this. They just did an 8% convertible preferred offering that's created stock volatility. $320-325 is his price target. But you could get it cheaper. However, look at Micron, which has been slammed 15% lately. Micron reduced guidance a little, but managers can handle cyclicality, and they have a good mix of products. $58 is his target.
PAST TOP PICK
PAST TOP PICK
July 30, 2019
(A Top Pick Jul 24/18, Up 42%) They are acquiring the chip industry in the US. He bought it last year in the fall following a software company acquisition. It remains a core holding for the conservative chip investor.
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Broadcom (AVGO-Q)
July 30, 2019
(A Top Pick Jul 24/18, Up 42%) They are acquiring the chip industry in the US. He bought it last year in the fall following a software company acquisition. It remains a core holding for the conservative chip investor.
PAST TOP PICK
PAST TOP PICK
July 8, 2019
(A Top Pick May 04/18, Up 25%) They've done a fine job acquiring companies and growing. There are rumours they will buy Symantec. Great free cash flow with growing dividends. However, headline risks lie with China through Huawei, which represents 4-5% of Broadcom's revenues. Watch the headlines.
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Broadcom (AVGO-Q)
July 8, 2019
(A Top Pick May 04/18, Up 25%) They've done a fine job acquiring companies and growing. There are rumours they will buy Symantec. Great free cash flow with growing dividends. However, headline risks lie with China through Huawei, which represents 4-5% of Broadcom's revenues. Watch the headlines.
DON'T BUY
DON'T BUY
June 7, 2019

He likes their dividend growth, but they grow by acquisition, therefore carry debt. When credit spreads blow out, it'll become tougher for them to do deals--and there are fewer deals for them to do now. Other semis that pay a dividend, though lower, are growing, and are in 5G are Xilinx and NVIDIA.

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Broadcom (AVGO-Q)
June 7, 2019

He likes their dividend growth, but they grow by acquisition, therefore carry debt. When credit spreads blow out, it'll become tougher for them to do deals--and there are fewer deals for them to do now. Other semis that pay a dividend, though lower, are growing, and are in 5G are Xilinx and NVIDIA.

PAST TOP PICK
PAST TOP PICK
April 8, 2019
(A Top Pick May 30/18, Up 26%) It is an acquisition driven company. He thinks it will continue to do well as it is relatively cheap with good earnings potential.
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Broadcom (AVGO-Q)
April 8, 2019
(A Top Pick May 30/18, Up 26%) It is an acquisition driven company. He thinks it will continue to do well as it is relatively cheap with good earnings potential.
PAST TOP PICK
PAST TOP PICK
March 7, 2019
(A Top Pick Feb 06/18, Up 14%) They had challenges last year. There was one acquisition that failed and one that the market did not like. They bought CA and the stock was punished once again. Still they recovered from the lows. It makes sense on a long term basis. It is a top of class name.
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Broadcom (AVGO-Q)
March 7, 2019
(A Top Pick Feb 06/18, Up 14%) They had challenges last year. There was one acquisition that failed and one that the market did not like. They bought CA and the stock was punished once again. Still they recovered from the lows. It makes sense on a long term basis. It is a top of class name.
PAST TOP PICK
PAST TOP PICK
December 13, 2018
(A Top Pick Jan 10/18, Up 1%) You need to be careful in the semiconductor space. He is still buy it and believes in it longer term.
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Broadcom (AVGO-Q)
December 13, 2018
(A Top Pick Jan 10/18, Up 1%) You need to be careful in the semiconductor space. He is still buy it and believes in it longer term.
PAST TOP PICK
PAST TOP PICK
November 26, 2018
(A Top Pick Oct 13/17, Down 2%) He still likes the name. It is a standout networking, equipment company. Huge rate of return on capital. It is undervalued. He thinks this is a gem.
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Broadcom (AVGO-Q)
November 26, 2018
(A Top Pick Oct 13/17, Down 2%) He still likes the name. It is a standout networking, equipment company. Huge rate of return on capital. It is undervalued. He thinks this is a gem.
DON'T BUY
DON'T BUY
November 8, 2018
Very cyclical. Alpha vehicle in that terms. He would be very careful at the moment with the entire semiconductor space. (Analysts’ price target is $287.44)
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Broadcom (AVGO-Q)
November 8, 2018
Very cyclical. Alpha vehicle in that terms. He would be very careful at the moment with the entire semiconductor space. (Analysts’ price target is $287.44)
BUY
BUY
November 2, 2018
He sees this as a cyclical stock. His model price is $357.75. He would be a buyer here. The recent pull back is a good buying opportunity.
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Broadcom (AVGO-Q)
November 2, 2018
He sees this as a cyclical stock. His model price is $357.75. He would be a buyer here. The recent pull back is a good buying opportunity.
COMMENT
COMMENT
October 23, 2018

Down 11% YTD. Don't panic though, despite their challenges. He still likes it. Look at your overall portfolio. If Broadcomm occupies say 4%, then you're okay, but not at 20%. Trades at a reasonable 11x P/E. Semis are cyclical, high-growth, but high-volatility. Now, we're in the down side of the cycle.

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Broadcom (AVGO-Q)
October 23, 2018

Down 11% YTD. Don't panic though, despite their challenges. He still likes it. Look at your overall portfolio. If Broadcomm occupies say 4%, then you're okay, but not at 20%. Trades at a reasonable 11x P/E. Semis are cyclical, high-growth, but high-volatility. Now, we're in the down side of the cycle.

BUY
BUY
October 18, 2018

Unlike the Facebooks and Googles of the world they have to make something to sell. And they have to make new and better on a continue basis. They are one of the most diverse players in the space. This industry is starting to mature and consolidate. The chip business is very volatile. (Analysts’ price target is $290)

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Broadcom (AVGO-Q)
October 18, 2018

Unlike the Facebooks and Googles of the world they have to make something to sell. And they have to make new and better on a continue basis. They are one of the most diverse players in the space. This industry is starting to mature and consolidate. The chip business is very volatile. (Analysts’ price target is $290)

PAST TOP PICK
PAST TOP PICK
October 2, 2018

(Past Top Pick May 4, 2018, Up 9%) For the past six months, it's been exciting to invest in this. Nice free cash flow growth, with dividends and increased share buybacks. In July, the shares dropped when they announced the acquisition of old-school tech company, CA Technologies. But they didn't explain why they bought this company until early-September. When the street heard this reason, shares rebounded. He still likes it.

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Broadcom (AVGO-Q)
October 2, 2018

(Past Top Pick May 4, 2018, Up 9%) For the past six months, it's been exciting to invest in this. Nice free cash flow growth, with dividends and increased share buybacks. In July, the shares dropped when they announced the acquisition of old-school tech company, CA Technologies. But they didn't explain why they bought this company until early-September. When the street heard this reason, shares rebounded. He still likes it.

PAST TOP PICK
PAST TOP PICK
August 23, 2018

(A Top Pick July 7/17, Down 11%) A few of the big acquisitions did not happen that he had expected. He still owns it and still buys it. You get 3.25% yield. It is cheap.

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Broadcom (AVGO-Q)
August 23, 2018

(A Top Pick July 7/17, Down 11%) A few of the big acquisitions did not happen that he had expected. He still owns it and still buys it. You get 3.25% yield. It is cheap.

SELL
SELL
August 21, 2018

It was on an uptrend till late-2017, then suffered a series of lower highs and lows. Semi-conductors are breaking their 200-day moving averages. We've seen a consolidation period this year, because inventories have built up among the semis.

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Broadcom (AVGO-Q)
August 21, 2018

It was on an uptrend till late-2017, then suffered a series of lower highs and lows. Semi-conductors are breaking their 200-day moving averages. We've seen a consolidation period this year, because inventories have built up among the semis.

BUY
BUY
August 20, 2018

He likes it after the pullback, trading on good technical support at $204-206. Potential upside. Earnings forecasts have been rising. Excellent balance sheet. Buying at $205 should work out.

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Broadcom (AVGO-Q)
August 20, 2018

He likes it after the pullback, trading on good technical support at $204-206. Potential upside. Earnings forecasts have been rising. Excellent balance sheet. Buying at $205 should work out.

DON'T BUY
DON'T BUY
August 7, 2018

He is not a big fan of semiconductors at this time. In general, he wants to see good fundamentals that are confirmed by good technicals. At this point, the Broadcom technicals are not good. It has broken trend and for that reason he would not step into it. Regarding the semiconductor cycle, he thinks there is less downside this time than there has been traditionally because there are so many new categories that are creating accelerating demand for semiconductors, such as AI, machine learning, and autonomous driving. These will fuel demand even in a downturn. He would also not buy a semiconductor company based on its dividend growth--semiconductor companies should be showing strong revenue growth. He would wait until the chart looks better and if the fundamentals still look good, then he would buy. (Analysts’ price target is $287.16)

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Broadcom (AVGO-Q)
August 7, 2018

He is not a big fan of semiconductors at this time. In general, he wants to see good fundamentals that are confirmed by good technicals. At this point, the Broadcom technicals are not good. It has broken trend and for that reason he would not step into it. Regarding the semiconductor cycle, he thinks there is less downside this time than there has been traditionally because there are so many new categories that are creating accelerating demand for semiconductors, such as AI, machine learning, and autonomous driving. These will fuel demand even in a downturn. He would also not buy a semiconductor company based on its dividend growth--semiconductor companies should be showing strong revenue growth. He would wait until the chart looks better and if the fundamentals still look good, then he would buy. (Analysts’ price target is $287.16)

TOP PICK
TOP PICK
July 26, 2018

He has held it for a while and it has done very well. Every once in a while you get these entry points. They recently confused the market by buying a software company when they are a chip company. It has been clearer that they have now acquired cash flow, patents and a new platform for M&A. (Analysts’ target: $287.90).

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Broadcom (AVGO-Q)
July 26, 2018

He has held it for a while and it has done very well. Every once in a while you get these entry points. They recently confused the market by buying a software company when they are a chip company. It has been clearer that they have now acquired cash flow, patents and a new platform for M&A. (Analysts’ target: $287.90).

TOP PICK
TOP PICK
July 24, 2018

He likes it because it's pulled back a lot after buying a software company. The market didn't like Broadcom, which makes semi-conductors, buying a software company. The stock is cheap, under 10x earnings. Well-managed, and expects it to recover. (Analysts' price target: $290.07)

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Broadcom (AVGO-Q)
July 24, 2018

He likes it because it's pulled back a lot after buying a software company. The market didn't like Broadcom, which makes semi-conductors, buying a software company. The stock is cheap, under 10x earnings. Well-managed, and expects it to recover. (Analysts' price target: $290.07)

PAST TOP PICK
PAST TOP PICK
July 18, 2018

(A Top Pick July 18/17 Down 15%). They covered their position in June. He likes the semi-conductor group, but the stock gapped down and they sold out.

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Broadcom (AVGO-Q)
July 18, 2018

(A Top Pick July 18/17 Down 15%). They covered their position in June. He likes the semi-conductor group, but the stock gapped down and they sold out.

TOP PICK
TOP PICK
May 30, 2018

It's the big semiconductor maker in the U.S. The company is still growing nicely. They'll do a $12 billion buyback program. A solid growth company (Analysts' price target: $309.60)

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Broadcom (AVGO-Q)
May 30, 2018

It's the big semiconductor maker in the U.S. The company is still growing nicely. They'll do a $12 billion buyback program. A solid growth company (Analysts' price target: $309.60)

PAST TOP PICK
PAST TOP PICK
May 17, 2018

(A Top Pick Jan 27/18, Up 20%) The takeover was rejected and the stock retreated, but he still holds it. It is still reasonably priced at 12 times. He likes the valuation, business and yield.

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Broadcom (AVGO-Q)
May 17, 2018

(A Top Pick Jan 27/18, Up 20%) The takeover was rejected and the stock retreated, but he still holds it. It is still reasonably priced at 12 times. He likes the valuation, business and yield.

TOP PICK
TOP PICK
May 4, 2018

Chip maker. $12 billion dollar buy back. Tons of free cash flow. Cheap stock. (Analysts’ price target is $312.30)

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Broadcom (AVGO-Q)
May 4, 2018

Chip maker. $12 billion dollar buy back. Tons of free cash flow. Cheap stock. (Analysts’ price target is $312.30)

TOP PICK
TOP PICK
February 6, 2018

Broadcom makes chips. It merged with Avgo, which also made chips. The are producing chips across the board, including chips for automobiles and for mobile devices. This business is very capex heavy and is changing rapidly. They have the scale to continuously innovate and pump capital in. The stock trades at 12x earnings with a dividend of $2 (3%). (Analysts' price target is $319.26).

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Broadcom (AVGO-Q)
February 6, 2018

Broadcom makes chips. It merged with Avgo, which also made chips. The are producing chips across the board, including chips for automobiles and for mobile devices. This business is very capex heavy and is changing rapidly. They have the scale to continuously innovate and pump capital in. The stock trades at 12x earnings with a dividend of $2 (3%). (Analysts' price target is $319.26).

TOP PICK
TOP PICK
January 10, 2018

This company has such a tight grip on the chip side of things, and you see evidence of that with how much Apple (AAPL-Q) has gotten into bed with them, in terms of making them a quasi-exclusive chip manufacturer for some parts of the iPhone. Thinks the acquisition with Qualcomm (QCOM-Q) is going to happen. Dividend yield of 2.6%. (Analysts' price target is $320.)

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Broadcom (AVGO-Q)
January 10, 2018

This company has such a tight grip on the chip side of things, and you see evidence of that with how much Apple (AAPL-Q) has gotten into bed with them, in terms of making them a quasi-exclusive chip manufacturer for some parts of the iPhone. Thinks the acquisition with Qualcomm (QCOM-Q) is going to happen. Dividend yield of 2.6%. (Analysts' price target is $320.)

TOP PICK
TOP PICK
October 13, 2017

A $100 billion market cap company. Think Cloud, think big data, think automation. They have wireline products, wireless products, enterprise storage, industrial automation, etc. They’ve been making a huge rate of return. It is undervalued. Dividend yield of 1.6%. (Analysts’ price target is $290.)

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Broadcom (AVGO-Q)
October 13, 2017

A $100 billion market cap company. Think Cloud, think big data, think automation. They have wireline products, wireless products, enterprise storage, industrial automation, etc. They’ve been making a huge rate of return. It is undervalued. Dividend yield of 1.6%. (Analysts’ price target is $290.)

BUY
BUY
August 23, 2017

QCOM-Q vs. AVGO-Q. Broadcom is getting closer to closing their deal. They have great price momentum, although valuation is catching up. QCOM-Q has poor price momentum and poor valuation.

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Broadcom (AVGO-Q)
August 23, 2017

QCOM-Q vs. AVGO-Q. Broadcom is getting closer to closing their deal. They have great price momentum, although valuation is catching up. QCOM-Q has poor price momentum and poor valuation.

COMMENT
COMMENT
August 1, 2017

Broadcom (AVGO-Q), Nvidia (NVDA-Q) or Amazon (AMZN-Q) for a long-term hold? He likes all of them. They are all very interesting companies. We all know the story of Amazon, and Nvidia is on fire with their new graphic chips. Broadcom has been doing a great job of consolidating the traditional computer chip industry. This one is probably the low PE, lowest growth of the bunch, but thinks you would be happy to own it.

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Broadcom (AVGO-Q)
August 1, 2017

Broadcom (AVGO-Q), Nvidia (NVDA-Q) or Amazon (AMZN-Q) for a long-term hold? He likes all of them. They are all very interesting companies. We all know the story of Amazon, and Nvidia is on fire with their new graphic chips. Broadcom has been doing a great job of consolidating the traditional computer chip industry. This one is probably the low PE, lowest growth of the bunch, but thinks you would be happy to own it.

TOP PICK
TOP PICK
July 18, 2017

This plays into the new iPhone theme. They expect to have 40% more content in the new iPhone than they did in the last iPhone. They make RF chips which are going into everything. The only semiconductor company that has a long-term contract with Apple. Dividend yield of 1.6%. (Analysts’ price target is $277.50.)

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Broadcom (AVGO-Q)
July 18, 2017

This plays into the new iPhone theme. They expect to have 40% more content in the new iPhone than they did in the last iPhone. They make RF chips which are going into everything. The only semiconductor company that has a long-term contract with Apple. Dividend yield of 1.6%. (Analysts’ price target is $277.50.)

PAST TOP PICK
PAST TOP PICK
June 20, 2017

(A Top Pick June 14/16. Up 55%.) The whole semiconductor group has been on fire since March/April of last year. This one is a key company in that space. You could also use the SPDR ETF XSD-N.

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Broadcom (AVGO-Q)
June 20, 2017

(A Top Pick June 14/16. Up 55%.) The whole semiconductor group has been on fire since March/April of last year. This one is a key company in that space. You could also use the SPDR ETF XSD-N.

TOP PICK
TOP PICK
June 7, 2017

He recommended this in January, and since then it has had a tremendous run. This is really an amalgamation of Broadcom and AVGO coming together. They are both in the chip space. By coming together, there are cost synergies that are still playing out. When you buy an iPhone, you are going to have a Broadcom chip in there. They also have the chips in automobiles. Dividend yield of 1.6%. (Analysts’ price target is $275.)

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Broadcom (AVGO-Q)
June 7, 2017

He recommended this in January, and since then it has had a tremendous run. This is really an amalgamation of Broadcom and AVGO coming together. They are both in the chip space. By coming together, there are cost synergies that are still playing out. When you buy an iPhone, you are going to have a Broadcom chip in there. They also have the chips in automobiles. Dividend yield of 1.6%. (Analysts’ price target is $275.)

TOP PICK
TOP PICK
January 27, 2017

This is a merger of AVGO and Broadcom, both leaders in the chip space. AVGO was in defence and automotive and Broadcom was mobile. It was the perfect marriage. By coming together, it was the cost synergies, but more so it allowed them to innovate much more quickly by having them under the same umbrella. This is essentially the largest Wi-Fi chip provider. They have established relationships with top of class companies, and it’s a space that continues to grow. Dividend yield of 1.99%. (Analysts’ price target is $215.86.)

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Broadcom (AVGO-Q)
January 27, 2017

This is a merger of AVGO and Broadcom, both leaders in the chip space. AVGO was in defence and automotive and Broadcom was mobile. It was the perfect marriage. By coming together, it was the cost synergies, but more so it allowed them to innovate much more quickly by having them under the same umbrella. This is essentially the largest Wi-Fi chip provider. They have established relationships with top of class companies, and it’s a space that continues to grow. Dividend yield of 1.99%. (Analysts’ price target is $215.86.)

TOP PICK
TOP PICK
June 14, 2016

This was a merger of Broadcom and Avago, both leaders in their market. Today they are the leader in RF chips which are in every Apple device. Their product offering is so strong that they were able to get a 2-3 year contract out of Apple (AAPL-Q) which Apple does not do. They have a locked-in loaded position in the next generation of iPhones and iPads, which is an expanding market. The 2nd market they are in is automotive. Cars are all becoming more connected to the Internet. This company is going to generate about $5 billion in cash over the next year. It is generating a return on capital of about 7%. Dividend yield of 1.26% which will grow at about 10% a year.

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Broadcom (AVGO-Q)
June 14, 2016

This was a merger of Broadcom and Avago, both leaders in their market. Today they are the leader in RF chips which are in every Apple device. Their product offering is so strong that they were able to get a 2-3 year contract out of Apple (AAPL-Q) which Apple does not do. They have a locked-in loaded position in the next generation of iPhones and iPads, which is an expanding market. The 2nd market they are in is automotive. Cars are all becoming more connected to the Internet. This company is going to generate about $5 billion in cash over the next year. It is generating a return on capital of about 7%. Dividend yield of 1.26% which will grow at about 10% a year.