A fake memo about Broadcom’s merger with CA Technologies circulated among Washington lawmakers.
Semiconductor company Broadcom said on Wednesday that the letter - made to look like it came from the Defense Department - mentioned the need for the Committee on Foreign Investment in the United States (CFIUS ) to review the merger deal. "We have been informed by DoD officials that this memo is in fact a forged document," Broadcom said.
Broadcom announced its plans in July to acquire CA Technologies for $19 billion. The proposal is yet to receive regulatory approval from the European Union and Japan. While the U.S. antitrust officials did give their nod in August, a new law signed by U.S. President Donald Trump gives the CFIUS expanded authority to review deals that could potentially allow foreign companies access to sensitive technologies or those that might compromise U.S. national security.
Trump had previously rejected Broadcom's plans of $117 billion acquisition of another chipmaker Qualcomm, following a CFIUS review. Broadcom at the time was moving its headquarters from Singapore back to the U.S.
Meanwhile, Senator Rand Paul asked the CFIUS to look into the merger - a call that has apparently nothing to do with the forged memo, according to Paul’s spokesperson. Paul said that CA Technologies' networks are "deeply embedded" in U.S. national security agencies and critical facilities including 29 nuclear reactors. "Just because Broadcom has changed their domicile to here doesn't mean we still shouldn't look at Broadcom," Paul said, while indicating the need to continue investigating any deal (including the Broadcom-CA merger proposal) that have potentially substantive implications for U.S. national security.
Broadcom however said, "Broadcom and CA Technologies are both American companies, and there is no basis in fact or law for CFIUS review of our pending transaction".
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where AVGO declined for three days, in of 254 cases, the price declined further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for AVGO moved out of overbought territory on March 05, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
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AVGO broke above its upper Bollinger Band on March 01, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on March 22, 2024. You may want to consider a long position or call options on AVGO as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AVGO just turned positive on March 25, 2024. Looking at past instances where AVGO's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
AVGO moved above its 50-day moving average on March 20, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 311 cases where AVGO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 61, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AVGO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.696) is normal, around the industry mean (7.389). P/E Ratio (49.005) is within average values for comparable stocks, (128.609). Projected Growth (PEG Ratio) (1.531) is also within normal values, averaging (2.449). Dividend Yield (0.015) settles around the average of (0.021) among similar stocks. P/S Ratio (14.815) is also within normal values, averaging (11.903).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of digital and analog semiconductor products
Industry Semiconductors