BROADCOM CORP

"Target Acquired, PROTON CANNON!!" —Iron Man.

I just spent about $95k SGD on Broadcom Corp tonight.
Markets are irrationally worried about their latest acquisition, the cost of acquisition of CA Technologies is $18.9bil...
yet the markets have wiped out more than 15% of the market cap of Broadcom tonight, just based on this news.
15% of the market cap prior to today.... works out to be approximately $18bil too.
This means that the markets are expecting the acquisition to be SO BAD, that..... the entire value of CA Technologies will be wiped out to zero post acquisition.
Doesn't make sense to me.
Broadcom earned a profit of $8 per share the last quarter.
TTM EPS is $25, assuming a massive MOS and EPS turns out to be just $18, at my purchase price, the PE is still only 11.4x, the lowest in the past 3 years (or longer, I only checked the past 3 years data)
The company generates a shit ton of FCF every quarter, and is looking to deploy it.
(Oh I understand how that feels. The itchiness of the proton cannon)

TTI sold put options and received USD $1,716.
At the same time, I bought 300 shares of AVGO at a total cost of USD $62,044.

Positions are already in the green to the tune of a profit of USD 700+. (see attached)

Let's see how powerful TTI's proton cannon is.

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29 likes 93 comments
Sella

Facebook is dropping. Bring on the TTI Canon to fire it UP

Sella

Reply to @ThumbTackInvestor : Hmm. Ok. I am taking out my hand grenade

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opy

sir, sharing chart ;-)

remind me of fb no long back

Bfb9283270237b00b3ecceb1b3499b9032959267
Sella

Current price $200. Can undercut TTI

ThumbTackInvestor

Reply to @layers : maybe next week if it's below $200
Prob selling more puts and recycling the capital to buy long term calls.

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layers

Broadcom's Buyout Of CA Technologies Looks Like Desperation https://seekingalpha.com/article/4186867?s... $AVGO, $CA

ThumbTackInvestor

Right opportunity + Deep FA + Available proton cannon + some hard hitting guts = $2.5k USD kopi lui in 1 day.
Premarket:

48097704f47f582384a884e61e8db0518bf831a6
sysy

Reply to @ThumbTackInvestor : Wow!!! Very nice kopi lui in 1 day... gratz :)

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jpeg

i intend to go avgo too but my proton cannon dry up liao. dun feel like refill the proton cannon with my bonus.

Snorlax

I used to have it at 130 at 2016 but then I sold too early liao like 180.

layers

Reply to @Snorlax : buy in again?

opy

Reply to @ThumbTackInvestor : yes i saw your note last night, thx

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ThumbTackInvestor

@layers
打铁趁热 or 趁火打劫, both also good.
Only day 1 and I plundered USD$1.8K

Proton Cannon is indeed very powerful.

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ThumbTackInvestor

Reply to @Snorlax : High IV yesterday, calls r relatively expensive to buy
I still would’ve if it had gone down more
I put in an order to buy calls at $210 but it didn’t go through.

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layers

Reply to @ThumbTackInvestor : think cnbc app got problem. now still stuck haham nice went up

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