Broadcom proposes replacing Qualcomm's board in pursuit of $105 billion takeover

Dec 05, 2017, 01:12
Broadcom proposes replacing Qualcomm's board in pursuit of $105 billion takeover

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The market stumbled after former national security adviser Michael Flynn pleaded guilty to lying to the Federal Bureau of Investigation and said he would cooperate with the probe into Russian meddling in the United States presidential election.

The Standard & Poor's 500 index fell 0.2 per cent to 2,642.22. The Dow Jones Industrial Average slid 40.76 points, or 0.2 per cent, to 24,231.59. Insiders own 3.60% of the company's stock. Brent, the global standard, lost 39 cents to $63.34 per barrel in London. Vantage Inv Limited Liability has invested 0% in Broadcom Limited (NASDAQ:AVGO). National Asset Management Inc. now owns 11,172 shares of the semiconductor manufacturer's stock worth $2,711,000 after acquiring an additional 6,589 shares during the last quarter. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it. Whereas long-term trend followers generally uses SMA200 and most investors will look for a cross above or below this average to represent if the stock is in a bullish or bearish trend. When stocks are *very* In Play one can see a RVOL of 5 and above. 4,673,940 shares of the stock were exchanged, compared to its average volume of 3,301,518. A stock that maintains a relatively stable price has low volatility. The stock closing price is now trading upward to its 50 day moving average with change of 5.97%, tumbled to its 20 day moving average with figure of -0.23% and above its 200 day moving average with value 12.95%. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time.

Volatility is simply a measure of the predictable daily price range-the range in which a day trader operates. Comparatively, Broadcom Limited posted earnings of $3.73 per share in the same quarter a year ago.

Last month, Broadcom officially expressed its intention to acquire Qualcomm, offering $103 billion in cash and stock to take over the San Diego, California-based chipmaker.

Broadcom countered in a statement Monday, saying that while some Qualcomm board members felt its bid undervalued the company, they've heard from a lot of shareholders who say they are interested in the acquisition. The company has set March 6 for an annual shareholders meeting, which will include the election of directors.

"We have repeatedly attempted to engage with Qualcomm, and despite stockholder and customer support for the transaction, Qualcomm has ignored those opportunities".

A number of equities research analysts recently commented on the stock.

Broadcom Limited (AVGO) has been given an average price target of $293.48 from analysts, according to data collected by Finviz. Barclays lifted their price objective on shares of Broadcom from $290.00 to $300.00 and gave the company an "overweight" rating in a research note on Wednesday, October 18th. The Beta for the stock stands at 1.04.