Seeking Alpha: Microsemi Puts Cash To Work In M&A And Buybacks

Back on July 25, I predicted that Microsemi (NASDAQ:MSCC) would likely stay active in the M&A arena and less than two months later the company has delivered - announcing the acquisition of Centellax. Microsemi also took the opportunity to introduce a new share buyback program and to confirm its fourth quarter growth guidance. Although none of these announcements meaningfully change the near-term picture for Microsemi, they're the sort of incremental positive moves that I've come to expect from this company and the Centellax deal could follow in the footsteps of past deals like Actel that add meaningful value down the road.

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Microsemi Puts Cash To Work In M&A And Buybacks

Seeking Alpha: RF Micro Devices Near A Major Transformation

No company ever announces a merger/acquisition and tells its shareholders that they expect to waste their money and produce no long-term benefits from the transaction. But even after adjusting for hope and optimism, I think the logic of the RF Micro Devices (RFMD) - TriQuint (TQNT) merger holds up. Together, the two companies should be able to achieve meaningful operating cost synergies while offering a comprehensive line of RF products for the mobile market and emerging Internet of Things market.

In terms of value, though, I think the market has the transaction pretty well figured out. There is upside if the two companies can quickly generate more than $125 million in cost synergies, but $10 to $11 looks about right for RF Micro Devices today and likewise $16.50 to $18 for TriQuint.

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RF Micro Devices Near A Major Transformation

Seeking Alpha: Avago Definitely Getting Some Benefit Of The Doubt

A little more than a year ago, I wrote about Avago Technologies (AVGO) and liked the prospects for the stock based both on its strong position in FBAR filters (an important component for handsets) and its under-appreciated positions in areas like fiber optic transceivers, SerDes ASICs, industrial fiber optics, and motion encoders for markets like networking, automation, and so on. In the 14 months since that piece, the shares have risen more than 110%.

I'm not quite as bullish on Avago now, though. I have a positive opinion of the LSI acquisition on balance, but I feel like sentiment has improved at a much greater rate than the long-term business prospects. While I do think Avago can exceed its own targets for reaping benefits from the LSI deal, it would appear that management pretty much has to if the stock is going to remain strong. I do like the newly-diversified Avago's business mix a little more and I think the company can do big things in both wireless and networking, but I think it takes some pretty ambitious assumptions to drive a significantly higher value estimate.

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Avago Definitely Getting Some Benefit Of The Doubt

Seeking Alpha: TriQuint And The Paradox Of #2

No company is ever going to say "we don't want to be #1," but in the weird world of Wall Street, sometimes it's better to invest in the challenger to the throne than the current occupant. To that end, while I like Avago (AVGO) better as a company, TriQuint (TQNT) may yet have better relative upside given the latter's opportunity to gain share in BAW filters as a second-source supplier and improve its much-inferior margin and cash flow production.

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TriQuint And The Paradox Of #2

Investopedia: Another Beat And Raise Highlights Avago's Quality

One of the more common questions I get is “If you like 'X' so much, why don't you own it?” Sometimes the answer comes down to not wanting to sell stocks to raise cash, and sometimes it's a question of timing or portfolio allocation. In the case of Avago (Nasdaq:AVGO), a semiconductor stock I've liked for a little while now, it's a little bit of “all of the above”. In particular, though, the general malaise in anything tied to wireless had me cautious, as well as the company's high reliance on China for industrial segment growth.

As it turns out, I needn't have worried. Avago delivered another beat-and-raise quarter, which I argue once again highlights that the company's chips offer pretty compelling advantages that allow for market share gains even amidst challenging end-market conditions. Writing this in the pre-market hours, I don't know if the indicated gains will hold in the market, but while the stock is not the cheapest name around anymore, I think there's enough momentum and quality to the name to lean towards “benefit of the doubt” on value.

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Investopedia: Avago's Beat-And-Raise Speaks To A Strong Story

There aren't too many beat-and-raise earnings stories in the semiconductor space these days, so Avago's (Nasdaq:AVGO) fiscal second quarter report is all the more impressive. Better still, the company not only has a strong position in next-gen smartphones (through its dominance of the FBAR market), but can look forward to recoveries in networking and industrial demand over the coming year. While Avago isn't a shockingly cheap stock today, it looks like a good mix of growth, quality, and value.

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http://www.investopedia.com/stock-analysis/053013/avagos-beatandraise-speaks-strong-story-avgo-tqnt-aapl-csco-qcom.aspx

Seeking Alpha: Apple Vs. Samsung - Avago Wins Either Way

Although many investors, analysts, and writers are deeply invested in the "Apple (AAPL) versus Samsung (SSNLF.PK)/the field" battle, I really don't care who wins. Instead, I try to find companies that can prosper from the overall growth in next-gen wireless devices, and Avago (AVGO) looks like a good candidate. While Apple certainly matters to Avago, I like the company's broader exposure to the handset market, not to mention what I believe to be undervalued opportunities in wired infrastructure and industrial/automotive markets.

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Apple Vs. Samsung - Avago Wins Either Way

Investopedia: Avago Still Advancing

What a difference a sell-off can make. Avago Technologies (Nasdaq:AVGO) has been an interesting chip company for a while now from a business perspective, but not quite so appealing as an investment candidate. With a broad sell-off in the markets in general and chips in particular, now may be one of those relatively rare opportunities to buy up some shares in a quality growth candidate.

A Good Third Quarter  
Chip stocks like Analog Devices (NYSE:ADI) and Microchip Technology (Nasdaq:MCHP) have not been impressing the Street much lately, but Avago stood up and delivered a solid fiscal third quarter performance. Revenue exceeded the top end of the analyst range on 8% sequential growth (and 10% annual growth). Growth was led by wireless (up 10% sequentially), but wired, industrial, and auto all did fairly well and there was no obvious weak point.

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http://stocks.investopedia.com/stock-analysis/2011/Avago-Still-Advancing-AVGO-ADI-MCHP-TQNT-AAPL-RFMD-SWKS0825.aspx

FinancialEdge: How Should Apple Spend Its Money?

Apple (Nasdaq:AAPL) has a problem - and it is a good problem to have. Products like the iPhone, iPod and MacBook, to say nothing of services like iTunes, have been so successful that Apple has accumulated more than $22 billion of cash and another $21 billion in long-term investments. With so much dry powder in the arsenal and persistent rumors about the health and legacy of CEO Steve Jobs, it seems reasonable to ask how the company might deploy this capital. Here are a few possible scenarios. 

Give it Back to Shareholders
This would be the simplest option, and there is no doubt that some shareholders would love to see a large-scale buyback or one-time dividend (or perhaps just a sustainably high regular dividend). Unfortunately, it seems like the least likely under current management. Simply giving back money and not applying it to some creative purpose seems very "un-Jobs-like," particularly when there are still mountains to climb and markets to conquer.

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http://financialedge.investopedia.com/financial-edge/0810/How-Should-Apple-Spend-Its-Money.aspx