Broadcom: Crazy Like A Fox, Or Just Barking Mad?

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.

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Broadcom: Crazy Like A Fox, Or Just Barking Mad?

CyberArk Worth Watching For Pullbacks

In a highly competitive and ever-evolving space, CyberArk Software (CYBR) looks like an interesting security name to me. Although there’s controversy and debate about the true size of the Privileged Access Management market, I believe it is a meaningful “second line of defense” that will be increasingly important to mid-sized and larger enterprises, giving CyberArk a chance to further penetrate a market that I believe could be worth somewhere around $5 billion. The valuation isn’t quite where I’d like to be, though, so this is a name I’m relegating to the watch list in the hope of getting a better entry price in the next year or two.

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CyberArk Worth Watching For Pullbacks

Seeking Alpha: Absent Growth, CA Inc. Holds Little Value

I love to find stories that the market has beaten up, left for dead, and ultimately ignored. Plenty of tech stocks have done well for me over the years from that starting point, and there are attributes to CA, Inc (NASDAQ:CA) that remind me of some of those. What CA lacks, and what keeps me from believing that the shares can approach what would otherwise be over $40/share in potential value, is any real growth in the business and reasonable prospects for a significant near-term improvement.

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Absent Growth, CA Inc. Holds Little Value

Seeking Alpha: Growth Is The Question, Answer, Problem, And Solution For CA, Inc

The story remains frustratingly consistent at CA, Inc. (CA). In a software investing world, where share price performance is often correlated pretty closely with revenue growth and margins, CA scores strongly on the second metric, but consistently poorly on the first. The basic investment thesis at CA hasn't really changed much in several years now - the mainframe business is an excellent source of high-margin revenue and cash flow, but the company just cannot seem to generate enough growth in the Enterprise business. Talking about improved go-to-market strategies and more consistent sales execution hits the right buzzwords for the sell-side community, but it's hard to say that the implication in CA's price of little-to-no growth unfairly maligns the company.

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Growth Is The Question, Answer, Problem, And Solution For CA, Inc