Josh Burwick
Long/short equity, growth at reasonable price, tech, Venture capital

Shorts Crowd In For Samsung S4 Play But Overlook The Forest For The Trees

Broadcom's (BRCM) short interest shot up 145% in the last reading (June 14th); no, that is not a typo. BRCM has become the hedge fund short du jour as a liquid, large cap name to play the Samsung S4 weakness. Samsung (OTC:SSNLF) is an important customer for BRCM, representing nearly 20% of revenue. Unfortunately, for shorts, the S4 is only 5% of revenue for the upcoming quarter, and shorts are overlooking increased S4 dollar content. Additionally overlooked is BRCM's strong positioning in low to mid range phones for Samsung and increasing content. BRCM is finally seeing signs of improved networking trends and an LTE handset win would rip the shares higher. Sporting a 10% FCF yield and trading...

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