perfection is clearly illustrated in INTC stock. The earning handily beats estimate by more than 1/3 of expectation and the stock tank after announcement. This stock has increased more than 100% in value in the past 3 months. All the good news and some hype had been built in and yet, the stock tanks after good news.
BRCM is in a much worse position. CEO hypes the stock will make a earning this year by reducing good will from the book at a tune of 16 billion dollars the previous reporting quarter. It's like moving losses from 2002 to 2001. Earning, however, is still in question. Watch what the earnings parade on BRCM will decimate this stock, Deja Vu of INTC.
BRCM declared a write-off of good-will(from acquisition) of 16 billion dollars from their 3rd qtr earning, which shows as a loss.
Generally, good-will reduction is done over a period of 3 to 4 years. They front load the reduction of good-will after 9/11, as everyone expects bad numbers. Thus, the 16 billion dollars of loss slip into 3rd qtr report. So, BRCM doesn't have to reduce good-will for the future qtrs to come. That will artificially makes you think they are doing better this year than last year.