- Avago provided generally bullish commentary on the business environment including China.
- The actual news didn't warrant the $50 collapse seen in the stock before the recent rally.
- The stock is exceptionally cheap even with the merger synergies with Broadcom.
The recent collapse in the stock of Avago (NASDAQ:AVGO
would suggest something other than consistent end-user demand. The
semiconductor company provides a great view into general demand in the
wireless handset and enterprise storage markets with a quarter that ends
in July. Not to mention, the guidance factors in actual August demand
form a better picture of the market than an email from Tim Cook
regarding one particular handset provider for the premium market.
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