BRCM creates Uncertainty
Why would Management say “mixed outlook from our larger customers… but remain optimistic for the 2nd half of the year”?
I mean, the semis have been dogs, and the only reason they are rallying is because they are not performing ‘as bad’ as many thought. So why did BRCM prepare the street for what they already know? And if they are optimistic for the 2nd half, why stay the negative comment in the first place.
The trade was right. BRCM beat rev. and earnings, yet those few comments caused the stock to decline. But was not expecting this management to create the level of uncertainty that they did.
As of now, I am holding. If it breaks 31, I will probably cut it loose.
UPDATE: Just went through the CC again…Based on the Q&A section, I think Management is being too conservative, way too conservative for the 2nd Q. Talk about a sandbagging.
