AVGO (Update)
Avago Technologies Ltd
TMT
05/15/2015
Presented
| Date | 05/13/2015 |
| Price | $123.13 |
| Market Cap | N/A |
| Ent Value | $34.52B |
| P/E Ratio | 65.4x |
| Book Value | $14.16 |
| Div Yield | 1.23% |
| Shares O/S | 256.59M |
| Ave Daily Vol | 2,340,000 |
| Short Int | 1.06% |
Current
| Price | $175.98 |
| Market Cap | $821.93B |
| Avago Technologies Limited designs, develops, and supplies semiconductor devices with a focus on analog III-V based products. The company operates through four segments: Wireless Communications, Wired Infrastructure, Enterprise Storage, and Industrial & Other segments. Its product portfolio comprises RF power amplifiers, RF filters, RF front end modules, ambient light sensors, proximity sensors, low noise amplifiers, multimarket-wave mixers, diodes, fiber optic transceivers, serializer/deserializer ASICs, and optical laser and receiver components. The company’s products also include read channel based system-on-chips, preamplifiers, serial attached SCSI and redundant array of independent disks controllers and adapters, custom flash controllers, industrial fiber optics, optocouplers, motion control encoders and subsystems, and LEDs. Its products are used in smartphones, hard disk drives, computer servers, consumer appliances, data networking and telecommunications equipment, enterprise storage and servers, and factory automation and industrial equipment. The company also offers PCI Express semiconductor and software connectivity solutions. It sells its products to original equipment manufacturers, contract manufacturers, end users, and distributors in Singapore, China, the United States, and internationally. Avago Technologies mited was founded in 2005 and is headquartered in Singapore. |
Please note, this is an update to: Long – Avago Technologies Limited (AVGO), which was originally presented on 4/7/2014 ($60.36).
Publicly traded companies mentioned herein: Apple Inc (AAPL), Avago Technologies Limited (AVGO), Google Inc (GOOG), Intel Corporation (INTC), MediaTek Inc (2454 TT), Qorvo, Inc. (QRVO), Samsung Electronics Co Ltd (005930 KS), Skyworks Solutions Inc. (SWKS)
Highlights
The presenter remains long shares of Avago (AVGO) following an “excellent run”, which outpaced his expectations. The company has seen demand for its wireless RF content (AVGO’s core business) “explode” due to strong iPhone 6 and 6 Plus sales and 4G deployment. Given the current setup and share price ($123), he sees the recent pullback (from the mid-$130s) as a buying opportunity, as shares are likely worth anywhere from $165 - $200, in his opinion.
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