Sooner or later, every highly acquisitive company will
do a deal that investors don’t like and that analysts roundly
second-guess. Given that Broadcom (AVGO)
does most things on a larger scale, I suppose it stands to reason that
when they step outside the box for an acquisition, they step way outside the box.
To call Broadcom’s proposed acquisition of CA Inc. (CA)
controversial is to strain the word almost to a point of absurdity. As
of this writing, the market is set to wipe away over $15 billion in
market value from Broadcom, suggesting that the $19 billion deal is a
huge, huge mistake. Although I do believe that this deal is a very
risky, and largely unnecessary, leap into the unknown, it would seem
that the extreme initial reaction is going to create a buying
opportunity for at least those Broadcom investors who still remain in
the “in Hock we trust” camp.
Follow this link for more:
Broadcom: Crazy Like A Fox, Or Just Barking Mad?
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