Thursday, May 28, 2015

Seeking Alpha: Will Avago Be A Rock In A Turbulent Semiconductor Sea?

Avago (NASDAQ:AVGO) is a great example of something that even after all these years in the markets still challenges me - knowing when to say "enough" on a winning stock and knowing when you're talking about a truly great growth story. I was worried about the valuation on Avago last summer, but the shares have risen another 85% since then. That makes that cautious stance a pretty terrible call in hindsight.

Looking ahead, I can't completely dismiss my concerns about valuation, but this is a company with strong margins and multiple growth drivers. What's more, it's a company with a clear operating plan in place and a strong sense of what it wants out of M&A - both of which can generate substantially more value in the future. I'm not expecting another double from Avago over the next year, but I think the company's growth opportunities and M&A options are strong positives in its favor.

Continue here:
Will Avago Be A Rock In A Turbulent Semiconductor Sea?

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