Long Position on AVGO @ $36.20 on 7/30/2012 (Momentum)

Avago Technologies Limited (AVGO) engages in the design, development, and supply of analog semiconductor devices with a focus on III-V based products. Its product portfolio comprises RF amplifiers, RF filters, RF front-end modules, ambient light sensors, light emitting diodes, low noise amplifiers, mm-wave mixers, optical finger navigation products, diodes, fiber optic transceivers, serializer/deserializer ASICs, motion control encoders and subsystems, optocouplers, and optical mouse sensors. The company's products are used in cellular phones, consumer appliances, data networking and telecommunications equipment, enterprise storage and servers, renewable energy and smart power grid, factory automation, displays, optical mice, printers, voice and data communications, keypad and display backlighting, backlighting control, base stations, storage area networking, in-car infotainment, lighting, motor controls, power supplies, and optical disk drives applications. It markets its products through a network of distributors and its direct sales force worldwide. The company sells approximately 6,500 products to original equipment manufacturers of wireless communications, wired infrastructure, industrial and automotive electronics, and consumer and computing peripherals markets. Shares are heading higher in a bullish "cup and handle" and are expected to move higher in this formation. Note that the firm reports its quarterly results on August 22. The stock has a 52-week trading range of $26.42 - $39.22. Shares last traded at $36.13. Should you decide to take a position, wait for the morning volatility to wear off and use a stop-loss of $34.32 (five percentage points below your purchase price.) Be sure to use a limit orderand not a market order. Keep in mind that our price target is 10% higher than your purchase price.

Position closed on 8/30/2012 at price of $36.50 with a 0.83% gain in 31 days.

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