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No. of Recommendations: 2
count me more in hacker's camp. i was never a huge fan of Tan's roll-up strategy, but he had proven a great deal maker and cost cutter so far. Personally, I don't get the reaction -- yeah, it is outside AVGO's core competency, but CA actually matches AVGO's typical profile. It's been a while, but CA has a super profitable mainframe biz that is not growing or shrinking slowly, but since they couldn't get a decent multiple (until recently), multiple management iterations have desperately tried to grow the distributed part of the business, and most of it have higher growth but not much profit. It's almost right up Tan's power alley.

I think another interesting point is whether Tan moving out of semi's is sending a signal about how he views that market, although it could be simply AVGO was getting too big. But if that is the case, what were current shareholders thinking anyway?
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