Avago (AVGO) Stock is the 'Chart of the Day'
NEW YORK (TheStreet) -- Avago Technologies (AVGO) - Get Report stock is slumping by 2.55% to $126.36 in early afternoon trading on Monday.
The company should win approval from the European Union's competition regulators to acquire Broadcom (BRCM) for $37 billion, sources told Reuters. As of last month, the semiconductor industry had announced $100.6 billion in mergers and acquisitions, up from $37.7 billion for all of 2014, according to the Wall Street Journal.
Based in Singapore, Avago is a designer, developer and global supplier of a range of analog semiconductor devices.
TheStreet's Chris Versace and Bob Lang of Trifecta Stocks have identified Avago as the "Chart of the Day." Here is what Versace and Lang had to say about the company:
Where there is smoke there is usually fire. Semiconductor stocks have been showing some sparks. Friday was a strong day for Market Vectors Semiconductor ETF (SMH) thanks to some strong earnings from components such as Skyworks (SWKS) and recoveries by Qualcomm (QCOM).
Avago also shot higher on this day and with good turnover. In fact, the chart is looking even more bullish as it breaks out from the defined range (triangle). The Moving Average Convergence Divergence (MACD) is now on a buy signal. As usual, a price confirmation would be ideal with a higher high and a higher low. This could get back to the old highs soon.
-Chris Versace and Bob Lang " Chart of the Day: AVGO" originally published on 11/9/15 on Trifecta Stocks.
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Separately, TheStreet Ratings team rates AVAGO TECHNOLOGIES LTD as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate AVAGO TECHNOLOGIES LTD (AVGO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
You can view the full analysis from the report here: AVGO
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.