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Broadcom buys Qualcomm make sense
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Broadcom buys Qualcomm make sense# Stock
W*n
1
1 + 1 = 10
go for it
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w*s
2
二进制吗
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W*n
3
abs not
base 10
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W*n
4
it's going to be a 1000 bucks stock
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n*n
5
东方不败,一统江湖
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W*n
6
AVGO rpt card:
PROFIT MARGIN: [FAIL]
This methodology seeks companies with a minimum trailing 12 month after tax
profit margin of 7%. The companies that pass this criterion have strong
positions within their respective industries and offer greater shareholder
returns. A true test of the quality of a company is that they can sustain
this margin. AVGO's profit margin of 3.71% fails this test.
RELATIVE STRENGTH: [FAIL]
The investor must look at the relative strength of the company in question.
Companies whose relative strength is 90 or above (that is, the company
outperforms 90% or more of the market for the past year), are considered
attractive. Companies whose price has been rising much quicker than the
market tend to keep rising. AVGO, with a relative strength of 79, fails this
test.
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: [FAIL]
Companies must demonstrate both revenue and net income growth of at least 25
% as compared to the prior year. These growth rates give you the dynamic
companies that you are looking for. These rates for AVGO (-250.00% for EPS,
and 17.70% for Sales) are not good enough to pass.
INSIDER HOLDINGS: [FAIL]
AVGO's insiders should own at least 10% (they own 0.77%) of the company's
outstanding shares. This does not satisfy the minimum requirement, and
companies that do not pass this criteria are less attractive.
CASH FLOW FROM OPERATIONS: [PASS]
A positive cash flow is typically used for internal expansion, acquisitions,
dividend payments, etc. A company that generates rather than consumes cash
is in much better shape to fund such activities on their own, rather than
needing to borrow funds to do so. AVGO's free cash flow of $5.30 per share
passes this test.
PROFIT MARGIN CONSISTENCY: [FAIL]
The profit margin in the past must be consistently increasing. The profit
margin of AVGO has been inconsistent in the past three years (Current year:
-13.13%, Last year: 19.99%, Two years ago: 6.16%), which is unacceptable.
This inconsistency will carryover directly to the company's bottom line, or
earnings per share.
R&D AS A PERCENTAGE OF SALES: [NEUTRAL]
This criterion is not critically important for companies that are not high-
tech or medical stocks because they are not as R&D dependant as companies
within those sectors. Not much emphasis should be placed on this test in
AVGO's case.
CASH AND CASH EQUIVALENTS: [FAIL]
Unfortunately, the data is unavailable for AVGO. Hence, an opinion cannot be
rendered.
INVENTORY TO SALES: [PASS]
This methodology strongly believes that companies, especially small ones,
should have tight control over inventory. It's a warning sign if a company's
inventory relative to sales increases significantly when compared to the
previous year. Up to a 30% increase is allowed, but no more. Inventory to
Sales for AVGO was 7.68% last year, while for this year it is 10.57%.
Although the inventory to sales is rising, it is below the max 30% that is
allowed. The investor can still consider the stock if all other criteria
appear very attractive.
ACCOUNT RECEIVABLE TO SALES: [PASS]
This methodology wants to make sure that a company's accounts receivable do
not get significantly out of line with sales. It's a warning sign if a
company's accounts receivable relative to sales increases significantly when
compared to the previous year. Up to a 30% increase is allowed, but no more
. Accounts Receivable to Sales for AVGO was 14.93% last year, while for this
year it is 16.47%. Although the AR to sales is rising, it is below the max
30% that is allowed. The investor can still consider the stock if all other
criteria appear very attractive.
LONG TERM DEBT/EQUITY RATIO: [FAIL]
AVGO's trailing twelve-month Debt/Equity ratio (68.54%) is too high,
according to this methodology. You can find other more superior companies
that do not have to borrow money in order to grow.
"THE FOOL RATIO" (P/E TO GROWTH): [FAIL]
The "Fool Ratio" is an extremely important aspect of this analysis.
Unfortunately, AVGO's "Fool Ratio" is not available due to a lack of one or
more important figures. Hence, an opinion cannot be given at this time.
The following criteria for AVGO are less important which means you would
place less emphasis on them when making your investment decision using this
strategy:
AVERAGE SHARES OUTSTANDING: [FAIL]
AVGO has either issued a significant amount of new shares over the past year
or has been issuing more and more shares over the past five years. AVGO
currently has 445.0 million shares outstanding. Neither of these are a good
sign. Generally when a small-cap company issues more stock, the existing
stock becomes devalued by the market, and hence diluted.
SALES: [FAIL]
Companies with sales less than $500 million should be chosen. It is among
these small-cap stocks that investors can find "an uncut gem", ones that
institutions won't be able to buy yet. AVGO's sales of $16,928.0 million
based on trailing 12 month sales, are too high and would therefore fail the
test. It is companies with $500 million or less in sales that are most
likely to double or triple in size in the next few years.
DAILY DOLLAR VOLUME: [FAIL]
AVGO does not meet the Daily Dollar Volume (DDV of $0.0 million) test. It is
required that this number be greater than $1 million and less than $25
million because these are the stocks that are liquid but remain relatively
undiscovered by institutions. AVGO is too illiquid to be considered
attractive at this time.
PRICE: [FAIL]
This is a very insignificant criterion for this methodology. But basically,
low prices are chosen because "small numbers multiply more rapidly than
large ones" and the potential for big returns expands. AVGO's price is not
currently available. Therefore the current price cannot be evaluated at this
time.
INCOME TAX PERCENTAGE: [FAIL]
AVGO's income tax paid expressed as a percentage of pretax income either
this year (-57.99%) or last year (5.18%) is below 20% which is cause for
concern. Because the tax rate is below 20% this could mean that the earnings
that were reported are unrealistically inflated due to the lower level of
income tax paid. However, we have utilized a sophisticated formula so that
the appropriate figures reflect a 'normal' tax rate (35%).
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W*n
7
what a joke
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W*n
9
1 bad apple + 1 bad apple = 10 good apple
genius
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