Company name Broadcom Corporation
Stock ticker BRCM
Live stock price [stckqut]BRCM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $53.64
Target stock price (averages with growth) $80.72
Target stock price (averages with no growth) $70
Target stock price (manual assumptions) $42.56

The following company description is from Google Finance: http://www.google.com/finance?q=brcm

Broadcom Corporation (Broadcom) is a global semiconductor solution for wired and wireless communications. Broadcom products seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environment. The Company provides system-on-a-chip (SoC), and software solutions. The Company’s segment includes Broadband Communications, Mobile and Wireless and Infrastructure and Networking. During the fiscal year ended December 31, 2012, operates its business to serve three markets: Broadband Communications, Mobile and Wireless and Infrastructure and Networking. In February 2012, the Company acquired NetLogic Microsystems, Inc. In April 2012, it acquired BroadLight, Inc.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

Many people need to focus on not spending money on things that they do not need. This desire to spend, in some cases, has severely affected the ability to develop an Emergency Fund as well as create an investment portfolio. Even if you read my book, The Confident Investor, I cannot help you if you are not setting aside money on a regular basis to invest in your financial well-being.

I recently read an article on The Simple Dollar that helps with this problem. If you find that you (or members of your family) feel like money is burning a hole in your pocket, jump over and read this article. The two points that I thought were most interesting:

  1. Don’t buy anything without coming up with 5 reasons to not buy it!
  2. Wait ten seconds before putting anything into your cart.

The article suggests 4 questions that you should ask yourself before every purchase:

  1. Can I find this exact item at a lower price elsewhere?
  2. Do I have something similar to this that’s unused or underused at home?
  3. Will I actually enjoy this?
  4. What’s wrong with this item?

It is a very good article. Jump over and learn how to control your spending urges.