Ashraf Eassa
Long/short equity, contrarian, independent research, tech

Broadcom: Unloved And Undervalued, Shares Have 30% Near-Term Upside

It is my belief that shares of Broadcom (BRCM) are extremely undervalued and have 30% near-term upside as shares are set to rebound significantly over the coming quarters.

Background

Broadcom is a fabless semiconductor that focuses primarily on developing networking and communications integrated circuits for a wide variety of applications including data, voice, and video. The company's operating segments can be distilled as follows:

  • Mobile and Wireless (48% of revenue in FY2012)
  • Broadband Communications (28% of revenue in FY2012)
  • Infrastructure and Networking (23% of revenue in FY2012)

The numbers do not add up to 100% as in FY2012, the company had a fourth operating segment known as "Other" which comprised roughly 2% of FY2012 revenue. This segment was composed of...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details