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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