I have been watching Cramer closely and he gives picks with expectations.
I was naturally skeptical for a while but he has proved over and over to be right
Forget the doom and gloomers etc, the sun will rise tomorrow, expecially for BRCM I see it rebounding strongly with the Conferences they are lined up for. The earnings event was a buying opportunity for strong hands and exit for weak.
This is not a roadway for shorts they need to realize they are luckier than hell from yesterday and take profits.
Gee, wake up and smell the coffee....If logic would rule stock price, none of us would be trading because EFFICIENT MARKET THEORY a la economist Malkiel would prevail and computers would figure out the price. Markets are by nature ineffient and only in the long term are stocks effiently priced....but the long term is always way off and in the meantime there are tons of over and underpricings that allow us to make a buck.
Right now it APPEARS that BRCM is underpriced due to their present stats and a deal is to be had by buying the stock. Why:
Sales up 45% year over year to $1.95 billion. GAAP earnings more than quadrupled from $0.11 per share a year ago to $0.47 per share today. They squeezed 1.28 out of every dollar of operating cash....and they have no debt. Valuation should be closer to 60 Dollars and eventually will be IF they keep going as they are right now